Book value per share is the amount each share would be worth if the company sold all its assets, paid off its debts, and divided the remaining value among all shareholders. It gives a realistic idea of what a share is actually worth based on the company’s financials, not just its market price.
The price-to-earnings (P/E) ratio shows how much investors are willing to pay for each dollar of a company’s profit. It compares the company’s share price to its earnings per share (EPS) and helps you see if a stock is considered expensive or cheap relative to how much it earns. For example, if a company’s stock price is $20 and its earnings per share is $2, the P/E ratio would be $20 ÷ $2 = 10. This means investors are paying 10 dollars for every 1 dollar the company earns.
Dividend yield shows how much a company pays in dividends each year compared to its share price. It’s a way to measure the return you’re getting from dividends, like earning interest on your investment. For example, if a company pays $2 in dividends per year and the stock costs $40, the dividend yield would be ($2 ÷ $40) × 100 = 5%. This means you’d earn back 5% of what you paid for the stock each year through dividends.