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For long-time investors, price-to-earnings (P/E) and price-to-book (P/B) ratios are familiar valuation multiples used to assess whether a company appears expensive or cheap at its current price. The article also outlines how moving averages (MA) are used in technical analysis.
P/E = Market price per share / Earnings per share (EPS). This ratio indicates how much investors are willing to pay for one unit of the company’s profit.
P/B = Market price per share / Book value per share (BVPS). The P/B ratio compares the market value of a company to its net asset value. A P/B < 1 means the stock is trading below net asset value.
Moving Average (MA) is the moving average line, calculated by taking the average of closing prices over a specified period. MA helps reduce noise from day-to-day price movements, creating a smoother trend line. Traders commonly use MA20, MA50, and MA200 to identify trends and potential buy/sell signals.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…