Quellenangabe:
[Journal:] The Journal of Entrepreneurial Finance (JEF) [ISSN:] 2373-1761 [Volume:] 15 [Issue:] 2 [Publisher:] The Academy of Entrepreneurial Finance (AEF) [Place:] Montrose, CA [Year:] 2011 [Pages:] 23-28
Zusammenfassung:
Ratio analysis is generally presented as something that has to be calculated after completing other financial statements and is generally viewed, particularly by students, as busy-work with little value. This paper changes the context of ratio analysis in order to demonstrate how a focus on the information provided by ratios adds to the value of the firm. By dissecting the valuation of a publicly traded firm using a price to earnings ratio multiplier, value generating factors in the form of ratios, can be inferred for smaller non-publicly traded ventures.