Every investor needs to know these 12 valuation ratios

Wikimedia Commons Valuation ratios provide consistent methodology for comparing stock prices and analyzing trends. Knowing which ratio to use, and when, is extremely important. An uninformed investor: "This stock is so cheap! The current stock price is only $0.50!" Asmart investor: "Umm…the stock price means nothing. Your stock’s EBITDA multiple is negative!" I know. Cheesy example. But hopefully, it gets the point across. Just because the stock price is trading under $1 doesn’t make it ch...