Price Earning Multiple: The price-earnings ratio or the PE multiple is a valuation measure that INDICATES how much the market values per rupee of earning of a company. It is computed as:

Market price per share/Earnings per share

Earnings per share are the profit after taxes divided by the number of shares. It indicates the amount of profit that company has earned, for every share it has issued. PE is represented as a multiple. When one refers to a stock was trading at 12x, it means the stocks is trading at twelve times its earnings.

Price to Book Value (PBV): The PBV ratio compares the market price of the stock with its book value. It is computed as market price per share upon book value per share.

The book value is the accounting value per share, in the books of the company. It represents the net worth (capital plus reserves) per share. If the market price of the stock were LOWER than the book value and the PBV is LESS than one, the stock may be undervalued. In a bullish market when PRICES move up RAPIDLY, the PBV would drop, indicating rich valuation in the market.

Dividend Yield: Dividend is declared as a percentage of the face value of the shares. A 40% dividend declared by company will translate into a dividend of Rs.4 per share with a face value of Rs 10 (10*40% =4). If the share was trading in the stock market for a price of Rs.200 per share, this means a dividend yield of 2%.

The dividend declared by a company is a percentage of the face value of its shares. When the dividend received by an investor is compared to the market price of the share, it is called the dividend yield of the share. 

Price Earning Multiple: The price-earnings ratio or the PE multiple is a valuation measure that indicates how much the market values per rupee of earning of a company. It is computed as:

Market price per share/Earnings per share

Earnings per share are the profit after taxes divided by the number of shares. It indicates the amount of profit that company has earned, for every share it has issued. PE is represented as a multiple. When one refers to a stock was trading at 12x, it means the stocks is trading at twelve times its earnings.

Price to Book Value (PBV): The PBV ratio compares the market price of the stock with its book value. It is computed as market price per share upon book value per share.

The book value is the accounting value per share, in the books of the company. It represents the net worth (capital plus reserves) per share. If the market price of the stock were lower than the book value and the PBV is less than one, the stock may be undervalued. In a bullish market when prices move up rapidly, the PBV would drop, indicating rich valuation in the market.

Dividend Yield: Dividend is declared as a percentage of the face value of the shares. A 40% dividend declared by company will translate into a dividend of Rs.4 per share with a face value of Rs 10 (10*40% =4). If the share was trading in the stock market for a price of Rs.200 per share, this means a dividend yield of 2%.

The dividend declared by a company is a percentage of the face value of its shares. When the dividend received by an investor is compared to the market price of the share, it is called the dividend yield of the share.