Which of the following are comparative valuation ratios?
I.the plowback ratio
II.the price-to-book ratio
III.the dividend payout ratio
IV.the price-to-sales ratio
V.the price-to-cash flow ratio

Question

Quizplus · Accepted Answer

The comparative valuation ratios are those that compare the company's valuation with its peers or industry standard. The plowback ratio and dividend payout ratio are not comparative ratios as they are used to evaluate a company's dividend policy and investment in growth. However, the price-to-book ratio, price-to-sales ratio, and price-to-cash flow ratio are used to compare a company's valuation with its peers or industry standard, making them comparative ratios. Therefore, options II, IV, and V are comparative valuation ratios.

Which of the Following Are Comparative Valuation Ratios