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Tickers in this Article: AH, COH, DIN, EXBD, TFM, LQDT, VPRT
The morning has been good for the market. The Nasdaq is up 1%; the S&P 500 has risen 0.5%; and the Dow has climbed 0.6%.

Underperforming the market overall, the Services sector (IYC) is up 0.4%, and these are its current biggest movers:
CompanyMarket CapPercentage Change
Best Buy (NYSE:BBY)$6 billion+10.9%
Yelp Inc (NYSE:YELP)$1.43 billion+9.9%
Interpublic Group (NYSE:IPG)$4.8 billion-9.3%
Churchill Downs, Inc. (Nasdaq:CHDN)$956.8 million+4.8%
Coach (NYSE:COH)$15.15 billion+4.7%
Dillard\'s, Inc. (NYSE:DDS)$3.25 billion+3.8% Inc (ADR) (Nasdaq:NTES)$6.96 billion+3.7%
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Best (NYSE:BBY) is trading at $19.57 per share, a significant rise of 10.9%. The company's volume for the day so far is 30.5 million shares, 3.5 times the current three-month average. A stock's volume conveys how excited investors are about it. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalization ratio for BBY is 31.4%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.

After an increase of 9.9%, Yelp (NYSE:YELP) has reached a current price of $25.70. This morning, the company's volume is 594,614 shares. This is 0.8 times the current daily average. The trading volume for a stock indicates the level of investor interest. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/book value ratio is one of the more common methods of determining whether a stock is fairly valued. YELP's P/B ratio of 11.18 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. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: Investment Valuation Ratios: Price/Book Value Ratio

Interpublic (NYSE:IPG) is currently trading at a share price of $9.96, a 9.3% decline. This morning, 7.5 million shares have been traded, on pace to finish the day below yesterday's volume of 40.4 million shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. 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. Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position - in other words, how much "bang for your buck" you are getting from dividends. IPG's dividend yield is 2.2%. For income-oriented investors such as retirees, a stock with a high dividend yield may be more attractive than a stock with a low dividend yield. SEE: Due Diligence On Dividends

Churchill Downs (Nasdaq:CHDN) has moved up 4.8% and is currently trading at $57.85 per share. So far today, the company's volume is 13,548 shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. 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. The price/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. CHDN has a high P/S ratio of 1.38. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.

Increasing 4.7%, Coach (NYSE:COH) is trading at $55.15 per share. With 3.1 million shares changing hands so far today, the company's volume is 0.4 times its current three-month average. High volume indicates a lot of investor interest while low volume indicates the opposite. Investors can use valuation ratios as tools to estimate what kind of deal a particular investment is. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. COH has a debt ratio of 35.8%, which is fairly low. A low debt ratio means the company has more available cash flow. As with all financial ratios, a company's debt ratio should be compared with the industry average or similar companies.

Dillard's (NYSE:DDS) is currently trading at $69.16 per share, a 3.8% increase. So far this morning, 213,961 shares have changed hands. This is in keeping with its current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. Valuation ratios allow the investor to make a quick determination as to a company's investment value. 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. DDS has a low debt-equity ratio of 42%. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage. Inc (Nasdaq:NTES) has risen 3.7% to hit a current price of $55.13 per share. At 250,478 shares, the company's volume so far today is consistent with the volume from yesterday lighter than yesterday's volume of 510,769 shares. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). P/E ratio for NTES is 17.4. From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: Investment Valuation Ratios: Price/Earnings Ratio

The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.

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