Market Value Ratio

It referred to the stockholder in analyzing present and future

investment in a company. In this ratio the stockholders are
interested in the way to certain variables affect the value of their
holdings. In order to the stockholder is able to analyze the likely
future market value of the stock market. There are three ratios
under this ratio. They are as follows:

1) Earnings Per Share (EPS) Ratio

2) Price Earnings (PE) Ratio
3) Dividend Corner Ratio
 Earnings per Share (EPS) Ratio

Earnings per share ratio is a small variation of ownership ratio. It

gauges by dividing net income into total number of share
outstanding .it is most important for deterring of share price.
The Earnings Per share Ratio formula as following as;

EPS=Net income /weighted average number of share outstanding

Year Harischandra Mills PLC Nestle PLC

2018 122,843,106 3,485,801,000

1,919,600 = Rs.63.99 53,725,463 =Rs.65

2017 125,145,817 3,635,841,000

959,800 = Rs.130.39 53,725,463 =Rs.67.67
 Price Earning (PE) Ratio

PE ratio is the measure of the share price relative to the annual net
income earned by the firm per share. PE ratio shows current investor
demand for a company share. A high PE ratio generally indicates
increased demand because investors anticipate earning growth in the
future.
The Price Earnings Ratio formula as following as;

PE ratio=share price/earnings per share

 Year Harischandra Mills PLC Nestle PLC

2018 1350.91334 1726.03

63.99 = Rs.21 64.88 = Rs.27

2017 2799.90 1913.32

130.38 =Rs.21.50 67.67 = Rs.28
 Dividend Cover Ratio
A financial metric that measures the number of times that a
company can pay dividends to its shareholders. The dividend
ratio is the ratio of the company’s net income divided paid to
shareholders.
The Dividend Cover Ratio formula as following as;

Dividend Cover Ratio= Earnings Per Share/ Dividend Per Share

Years Harischandra Mills PLC Nestle PLC

2018 63.99 64
42 = Rs.2 50 =Rs.1

2017 130.38 67.67

85 = Rs.2 50 =Rs.1