Which of the following valuation measures is often used to compare firms that have no earnings?

A) price-to-book ratio
B) P/E ratio
C) price-to-cash-flow ratio
D) price-to-sales ratio

Price-to-Book Ratio

A valuation metric comparing a company's current market price to its book value.

P/E Ratio

The price-to-earnings ratio is a valuation metric for a stock, calculated by dividing the market price of a share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Price-to-Sales Ratio

A valuation ratio that compares a company's stock price to its revenues, an indicator of the value placed on each dollar of a company's sales or revenues.