EV/EBITDA can be one of the best quantifications for determining whether or not a company should be valued as low-priced or high-priced. To calculate, divide EV by EBITDA (see above for calculations). The higher the number, the higher the price of the business. Calculating the future growth rate requires investment investigation. The Gordon model or Gordon growth model is the best known of a class of discounted dividend models. He deduces that dividends will grow at a continuous growth rate (reducing the discount rate). The debt-to-equity (D/E) ratio is an economic ratio that indicates the portion of equity and debt used to finance a business. s goods. To calculate your debt to equity ratio: D/E = Debt (liabilities) / equity. By differentiating a company's price and earnings per share, it is possible to evaluate the market share valuation of a company and its shares compared to the income the company is actually producing. Stocks with higher expected earnings growth will usually have a higher P/E, while those expected to have lower (or riskier) earnings growth will usually have a lower P/E. The P/E ratio is useful for comparing the valuation of similar organizations in a comparable industry or