P/E = Price to Earnings
A ratio used to value a company. It takes the current price of a stock and the earnings the company has gained over the trailing twelve months. This ratio tells you roughly how many years you must hold the stock before you see a 100% return on your investment. The Danger is if the P/E ratio goes to zero then your screwed.
P/B = Price to Book Value
A ratio used to compare its stock price to the company's book value based on the most recent quarter. If the P/B ratio is lower than 1 you will find the company to be undervalued. Meaning the book value is greater than the stock price. This is a good sign when looking for a stock on sale.
Quick Ratio
This ratio is a good determination of a company's short term liquidity. Meaning, does the company have money to pay its bills without selling inventory or in other words pay with cash or some other very liquid asset. The higher the quick ratio the better position a company is in. Example: If the quick ratio is above 1 then the company can pay all of its bills at least once with cash that year. This ratio is based on the most recent quarters analysis.
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