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Tickers in this Article: GRPN, ANGI, CVLT, MNST, TSLA, MCRS, ULTA
The market is having a good day so far. The Nasdaq has increased 0.6%; the S&P 500 is up 0.3%; and the Dow is trading up 0.3%. The Nasdaq Composite Index represents all the stocks that trade on the Nasdaq stock market.

The biggest movers traded on the NASDAQ so far are:
CompanyMarket CapPercentage Change
Groupon Inc (Nasdaq:GRPN)$4.88 billion-24.6%
Angie\'s List Inc (Nasdaq:ANGI)$767.7 million-16.1%
CommVault Systems, Inc. (Nasdaq:CVLT)$2.37 billion-5.2%
Monster Beverage Corp (Nasdaq:MNST)$9.4 billion+5%
Tesla Motors Inc (Nasdaq:TSLA)$3.29 billion-4.7%
MICROS Systems, Inc. (Nasdaq:MCRS)$3.93 billion-3.9%
Ulta Salon, Cosmetics & Fragrance, Inc. (Nasdaq:ULTA)$5.29 billion+3.9%
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After a precipitous drop of 24.6%, Groupon (Nasdaq:GRPN) is now trading at a share price of $5.69. This morning, the company's volume is 34.6 million shares. This is 4.4 times its current daily average. Volume indicates the level of interest that investors have in a company at its current price. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. The P/B ratio for GRPN is 5.17, indicating that the stock is trading for more 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. To put things in perspective, should be made among companies in the same industry rather than across industries. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Angie's List (Nasdaq:ANGI) is currently trading at $11.15 per share, after a steep drop of 16.1%. The company's volume is currently 1.9 million shares for the day, more than yesterday's 198,305 shares. A stock's volume conveys how excited investors are about it. A company's investment value can be 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. One of the favorite tools of many value investors is analyzing price/book value ratios, as it provides a measure of the underlying value of a company's assets as compared to the valuation of its equity. ANGI's P/B ratio of 19.22 shows that its share price is higher than its book value. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio

At $50, CommVault Systems (Nasdaq:CVLT) has slipped 5.2%. So far today, 522,947 shares have changed hands. 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. 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. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for CVLT is 5.22, which is relatively high. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.

Monster (Nasdaq:MNST) has increased to a share price of $55.95, a 5% rise. At three million shares, the company's volume so far today is 0.7 times the average volume over the last three months. High volume indicates a lot of investor interest while low volume indicates the opposite. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio is calculated by dividing total liabilities by total assets. The debt ratio for MNST is a low 25.8%. In other words, the company is less sensitive to changes in business or interest rates since less of its cash flow is dedicated to paying off loan expenses. 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.

Tesla Motors (Nasdaq:TSLA) is down 4.7% to reach $29.69 per share. So far this morning, 418,561 shares have changed hands. This is 0.3 times the average daily volume. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. Investment valuation ratios can be very useful in determining the value of a stock, but it is very important to keep in mind that while some financial ratios have general rules (or a broad application), in most instances it is a prudent practice to look at a company's historical performance and use peer company/industry comparisons to put any given company's ratio in perspective. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. TSLA has a high D/E ratio of 706%. Companies in capital-intensive industries usually have higher D/E ratios because they need to buy more property, plants, and equipment to operate. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.

MICROS Systems (Nasdaq:MCRS) has fallen 3.9% and is currently trading at $46.98 per share. So far today, the company's volume is 391,427 shares, which is more trading activity than there was yesterday. 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. There are generally two price/earnings ratios calculated: the first, called the trailing Price/Earnings ratio, is calculated using the previous years actual earnings; the second, called forward Price/Earnings ratio, is calculated using the next year's estimated earnings. Compared to the industry average of 16.29, MCRS' P/E ratio of 24.9 is quite high. 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 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

After an increase of 3.9%, Ulta Salon, Cosmetics & Fragrance (Nasdaq:ULTA) has reached a current price of $87.35. So far today, the company's volume is 640,643 shares. 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/earnings to growth (PEG) ratio divides a company's P/E ratio by its growth rate of earnings-per-share. ULTA has a PEG ratio of 1.73, which is consistent with the industry average. Because of the adjustment for earnings growth rate, the PEG ratio is somewhat more useful than many formulas for comparing companies in different industries.

The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. However, these fundamental metrics must be analyzed with historic data, industry information in addition to firm specific financial statements.

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