Stock investing requires a careful analysis of the financial data. The key is to find a company's true worth.
However, an easier way to check a company's performance is to look at its financial ratios.
Two commonly used financial ratios in the valuation of cement stocks are:
Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more overvalued the stock.
To find stocks with favourable P/E ratios, check out our list of cement stocks with their P/E ratios.
Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.
To find stocks with favourable P/BV ratios, check out our list of cement stocks with their P/BV ratios.