# Stock Valuation Ratios — P/E, PEG & How to Value a Stock

> Valuation measures whether a stock's price is cheap or expensive relative to what the business earns, owns, and generates in cash. The core valuation ratios — P/E, PEG, and cash-flow yield — only mean something in context, so you compare them to the company's own history and its sector peers.

## Guides in this cluster

- [P/E Ratio](https://foliofundamentals.com/learn/pe-ratio) — Price relative to earnings — the headline gauge.
- [PEG Ratio](https://foliofundamentals.com/learn/peg-ratio) — P/E adjusted for growth — is the premium justified?
- [Free Cash Flow Yield](https://foliofundamentals.com/learn/fcf) — Valuation based on real cash, not accounting earnings.

## More valuation metrics (coming soon)

EV/EBITDA, Price-to-Book (P/B), Price-to-Sales (P/S)

## How this fits

Valuation is one of the five pillars of the FolioFundamentals Fundamental Score. See how to analyze stocks (/learn/how-to-analyze-stocks) and the other pillars: Valuation (/stocks/valuation), Profitability (/stocks/profitability), Growth (/stocks/growth), Financial Health (/stocks/financial-health).

Analyze any stock free: https://foliofundamentals.com/analyzer