Stock valuation bingo

Exercise and reference answers

Clues and terms

1. Clue

   Price per unit of earnings.

   Item

   P/E

2. Clue

   Built on reported earnings.

   Item

   Trailing

3. Clue

   Built on projected earnings.

   Item

   Leading

4. Clue

   Market value against book.

   Item

   P/B

5. Clue

   Left after debts are paid.

   Item

   Book value

6. Clue

   Dividend over share price.

   Item

   Yield

7. Clue

   Used when the firm loses money.

   Item

   P/S

8. Clue

   Worth of all future dividends.

   Item

   DDM

9. Clue

   Dividends grow at one rate.

   Item

   Gordon

Instructions

Read each clue and tap the term it describes.

Explanation