How to evaluate stocks using ratios
Valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating investment potential. Price-to-earnings Image: Fidelity's stock screener with the Company Value section highlighted. Return on equity (ROE), quick ratio, debt covering ratio, debt-to-equity ratio and price-to-book ratio (PBR) are all ratios that can be calculated to provide clues