A financial ratio in which a company's Market Value is divided by its sales. The interest rate at which banks lend to their best customers. Privately-Held A company whose stock is not traded on a public securities exchange. Pro Forma Financial Statements Financial statements as adjusted to reflect a projected or planned transaction. Profit Margin Determined by dividing Net Income by net sales and is expressed as a percentage.
Profit margin is a measure of how efficiently the business is operating.
Purchase Accounting Method of accounting for a Merger in which the acquirer is treated as having purchased the assets and assumed liabilities of the acquiree, which are all written up or down to their respective fair market values. The difference between the purchase price and the net assets acquired is classified as Goodwill . The alternative is the Pooling of Interest method. A market-based valuation methodology in which the current share prices of similar publicly traded companies are analyzed.