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Tickers in this Article: TITN, KYAK, QCOR, EBAY, FFIV, SOHU, MLNX
This morning has been rocky for the market. The Nasdaq has fallen 0.2%; the S&P 500 is down 0.4%; and the Dow has declined 0.5%. The Nasdaq Composite Index is a capitalization-weighted index, with each company weighted in proportion to its market value.

The biggest movers traded on the NASDAQ so far are:
CompanyMarket CapPercentage Change
Titan Machinery (Nasdaq:TITN)7.2 million-6%
Kayak (Nasdaq:KYAK).04 billion+5.6%
Questcor Pharmaceuticals (Nasdaq:QCOR).44 billion+3.9%
Ebay (Nasdaq:EBAY).09 billion+3.8%
F5 Networks (Nasdaq:FFIV).09 billion-3.4% (Nasdaq:SOHU).51 billion+3%
Mellanox (Nasdaq:MLNX).74 billion-2.7%
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At $24.56, Titan Machinery (Nasdaq:TITN) has slipped 6%. The company is currently trading a volume of 613,682 shares. A stock's volume conveys how excited investors are about it. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. TITN's P/B ratio of 1.43 shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. P/B has its shortcomings but is still widely used as a valuation metric, more relevant for use by investors looking at capital-intensive or finance-related businesses, such as banks; book value does not carry much meaning for service-based firms with few tangible assets. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Kayak (Nasdaq:KYAK) has increased to a share price of $29.27, a 5.6% rise. The company's volume is currently 133,214 shares for the day, 0.7 times its current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). The P/E ratio for KYAK is 82.4, above the industry average of 3.36. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Can Investors Trust the P/E Ratio?

Questcor Pharmaceuticals (Nasdaq:QCOR) is at $42.45 per share after an increase of 3.9%. So far today, the company's volume is 829,498 shares. This is on pace to reach yesterday's trading volume of 1.8 million shares. If a stock price moves on high volume, this means that the change is a significant one. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. As with most ratios, comparisons of company price/earnings to growth ratios (PEG ratios) are most appropriate for similar companies. QCOR's PEG ratio is 0.48. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

Ebay (Nasdaq:EBAY) has risen 3.8% and is currently trading at $47.58 per share. At 8.1 million shares, the company's volume so far today is 0.8 times the average volume over the last three months. In technical analysis, trading volume is used to determine the strength of a market indicator. A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. While measuring a price/earnings ratio (P/E ratio) is a popular valuation technique, the measure cannot be calculated for companies without earnings, so some investors analyze the price/sales ratio. The P/S ratio for EBAY is a high 4.16. This could be a good sign if the share price increases. It is important to compare P/S ratios for companies in the same industry, as ratios can vary quite widely for companies in different industries.

Currently trading at $98.81 per share, F5 Networks (Nasdaq:FFIV) has fallen 3.4%. So far today, 642,891 shares have changed hands. High volume indicates a lot of investor interest while low volume indicates the opposite. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. The debt ratio measures the leverage of a company, and a company's leverage is a good way to assess risk. FFIV has a debt ratio of 30.2%, which is fairly low. This indicates that the company engages in conservative financing with opportunities to borrow in the future at no significant risk. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.

Rising 3%, (Nasdaq:SOHU) is currently trading at $41.02 per share. The company's volume is currently 598,083 shares for the day, 0.9 times the current daily average. Volume is used to evaluate how meaningful the price movement of a stock is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. The price/book value ratio is especially important for value investors as it can provide an indication of the true value of a company's assets at a time when its business model may be failing. SOHU has a P/B ratio of 1.53 which shows that its share price is higher than its book value. This implies that investors expect management to create more value from a given set of assets and/or that the market value of the firm's assets is significantly higher than their accounting value. All else being equal, a stock with a low P/B value ratio is more attractive than a stock with a high ratio. SEE: Using The Price-To-Book Ratio To Evaluate Companies

Mellanox (Nasdaq:MLNX) is trading at $110.90 per share, down 2.7%. The company is trading at a volume of 428,069 shares. This is on pace to fall short of yesterday's volume of 1.3 million shares. Volume is an important indicator because it indicates how significant a price shift is. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. A company's price/earnings ratio (P/E ratio) provides a measure of how expensive or cheap a stock is. MLNX has a P/E ratio of 85.7, high compared to the industry average of 11.72. This could mean that the market is expecting big things over the next few months or years. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Understanding The P/E Ratio

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.

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