Relative Value Ratios

Overview:

This lesson continues to look at the investor’s decision-making process. Financial documents and financial ratios are one piece of this puzzle. In this lesson, students will learn about another piece of evidence that investors use when making choices: relative value ratios. This lesson will cover the main relative value ratio (P/E ratio), giving students more tools for their investment toolbox.

NBEA Standard(s):
  • Entrepreneurship, IV. Finance
  • Entrepreneurship, V. Accounting

Lesson Plan Details:

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