PER, PBV, ROE, and EPS are four ratios that help you judge a stock using the company's financial statements. EPS shows profit per share. PER compares the share price with EPS. PBV compares the price with book value per share. ROE measures how efficiently a company turns its equity into profit.

This article explains the formula, how to read it, and the limits of each ratio. The examples use Apple and NVIDIA as of October 23, 2026, so you can see real numbers. This is not a recommendation to buy or sell.

Key Takeaways

• EPS = net income divided by shares outstanding. PER = share price divided by EPS.
• PBV = share price divided by book value per share. ROE = net income divided by equity.
• As of October 23, 2026, Apple's PER is about 39.9 times and NVIDIA's is about 26.7 times. A high or low number does not automatically mean expensive or cheap.
• One ratio is not enough. Compare with similar companies, look at the trend over several periods, and check the date of the report.

What Are Stock Ratios

A stock ratio is a number you get by dividing one piece of data by another, usually the share price and a figure from the financial statements. The goal is to make companies of different sizes comparable. You cannot compare Apple with a small company by their profit in rupiah or dollars, but you can compare them by their ratios.

These ratios are part of fundamental analysis, which means judging a stock by the condition of the company's business.

EPS Explained

EPS (Earnings Per Share) is a company's net income per share.

EPS = net income / shares outstanding

Financial statements usually show diluted EPS, which already counts extra shares from options and other instruments. To see a full year, use trailing twelve month (TTM) EPS, which is the sum of EPS for the last four quarters.

Rising EPS over time means profit per share is growing. But EPS can also rise because the company reduces the number of shares outstanding, not because the business is growing.

PER Explained

PER (Price to Earnings Ratio, also called P/E) compares the share price with EPS.

PER = share price / EPS

Example: a share price of US$100 and EPS of US$5 give a PER of 20 times. This means the market values the stock at 20 times its annual profit.

How to read it:

• High PER. The market expects profit to grow, or the stock is seen as expensive. Both are possible.
• Low PER. The stock may be seen as cheap, or the market may doubt the profit outlook.
• Compare within the same industry. The PER of a tech company and a mining company cannot be compared directly.

PBV Explained

PBV (Price to Book Value) compares the share price with book value per share.

Book value per share (BVPS) = total equity / shares outstanding

PBV = share price / BVPS

Book value is assets minus liabilities. A PBV below 1 means the share price is below its book value. A very high PBV means the market values the company far above its book value, usually because it is seen as earning high profit from few assets.

PBV is most useful for companies with tangible assets, such as banks and manufacturers. For tech companies, much of the value often sits in brand and technology that are not fully recorded as assets.

ROE Explained

ROE (Return on Equity) measures the profit generated from shareholders' equity.

ROE = net income / average equity

A high ROE means the company is efficient at turning equity into profit. But ROE can also look very high because equity is small, for example when a company repurchases a lot of its own shares. That is why you should read ROE together with PBV and other data.

Example: Apple vs NVIDIA as of October 23, 2026

Here are the ratios calculated from official financial statements and the October 23, 2026 closing prices.

How to read this example:

• PER. The market values Apple at about 39.9 times its annual profit, and NVIDIA at about 26.7 times. NVIDIA's PER is lower, but the two companies have different businesses and different profit cycles.
• Apple's PBV and ROE look extreme. One factor is that Apple's equity is small compared with its profit. Apple's shares outstanding fell from about 14.77 billion (September 27, 2025) to about 14.61 billion (June 27, 2026). Do not interpret Apple's PBV the way you would a bank's PBV.
• Report dates differ. Apple's fiscal year ends in September, and NVIDIA's ends in January. Their trailing 12-month data end about one month apart.
• ROE uses average beginning and ending equity. Using ending equity alone gives a lower ROE (about 119.9% for Apple and 84.2% for NVIDIA).

These numbers will change with every new financial statement and every move in the share price. Apple is scheduled to release its fiscal 2026 fourth quarter report on November 2, 2026.

Limits of Stock Ratios

• Ratios look backward. EPS and ROE come from profit that has already happened, while share prices reflect expectations about the future.
• Different industries are not comparable. Compare a stock with similar competitors.
• One ratio is not enough. A low PER with falling profit is not a good sign.
• Accounting figures can be affected by one-off items. Net income can rise or fall because of non-operating income, not the core business.
• Check the date of the data. Ratios from data sites may use a newer price or a different report.

How to Use Stock Ratios

1. Pick the same period. Compare trailing 12-month data and the same price date.
2. Compare with competitors. Find companies in the same industry.
3. Look at the trend. Check EPS and ROE over several quarters, not one number.
4. Read them together. PER, PBV, and ROE complement each other. Use all three.
5. Check the original report. Take numbers from the company's official financial statements, then calculate them yourself.

US Stock Tokens on Mobee

Mobee offers the Apple stock token and the NVIDIA stock token. Each is a token that follows the Apple share price or the NVIDIA share price. The ratios in this article assess the company, while the token follows the share price. A token is not direct ownership of the shares, and you can learn the difference in US Stock Tokens vs Regular Stocks.

For deeper analysis, read Apple Stock Performance and NVIDIA Stock Performance. If you are just starting out, read How to Trade Stocks on Your Phone.

How to Buy US Stock Tokens on Mobee

Mobee is operated by PT CTXG Indonesia Berkarya, which is licensed and supervised by OJK.

1. Sign up and verify. Complete account verification (KYC).
2. Deposit rupiah. Add a rupiah balance to your Mobee account.
3. Open Spot Trade. Find the stock token you have been studying.
4. Set the amount. Start with a small amount, then confirm the order.
5. Monitor. You can track the token's value in the app at any time.

Conclusion

PER, PBV, ROE, and EPS help you look at a stock through its business, not just its price. But no ratio stands alone. Compare with competitors, look at the trend, and check the date of the data. Use ratios to understand, not to be sure about where the price is heading.

FAQ

Disclaimer

This content is meant to give readers additional information and is not an invitation to buy or sell any asset. Prices of crypto assets and tokenized assets are volatile and carry risk. The ratios in this article are calculated from historical data and do not guarantee future results. Always do your own research before you trade.