The price-to-return ratio is the rise and fall of a stock since its inception. The return on price is the reciprocal of the profit rate of common stock. The smaller the ratio, the greater the profitability of the company and the better the stock quality.
Return on price
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The price-to-return ratio is the rise and fall of a stock since its inception. The return on price is the reciprocal of the profit rate of common stock. The smaller the ratio, the greater the profitability of the company and the better the stock quality.
- Name
- Return on price
- Meaning
- Change since the beginning
- Types of
- rate of return
- Meaning
- The smaller the ratio, the greater the profitability of the company
Calculation of price return
Price-to-return calculation formula: Price-to-return ratio = common stock price per stock market / common stock book value