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Who first thought of some of the financial ratios?
I am wondering who first thought of some of the first financial ratios which are used in calculating stock values. For instance, who first came up with the idea of P/E ratio, EPS, PEG, etc. I can't seem to find any history of who thought of them or even when they were first used. If anybody can shed any light on this it would be fantastic. Any sources would be nice too.
Thank you
1 Answer
- JerryLv 76 years ago
Much of ratio analysis is based on the work of Benjamin Graham, particularly the books "Security Analysis" and "The Intelligent Investor". He was Warren Buffett's mentor.
Some ratios are strongly advocated by a particular investor or author. For example, Ken Fisher has written extensively on the P/S (Price to Sales) ratio.