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PB ratio is most appropriate for {Ans: • Banks / manufacturing / other asset-intensive businesses}What do most analyst and investors do with SBC {Ans: they ignore the expense and adjust reported earnings to exclude the expense Since SBC expense reduces GAAP tax expense, when analysts ignore SBC expense, they should also ignore the reduction to GAAP tax expense due to the SBC}EV / EBIT is most appropriate for {Ans: • Companies with positive operating income • Service-based businesses (low capital intensive firms) • Business with varying levels of capital intensity}Similar financial characteristics {Ans: Size Leverage Margins Growth prospects}Gross debt {Ans: • Debt • Non-controlling interests • Preferred Stock}PEG ratio is most appropriate for {Ans: • Companies with positive earnings but at different lifecycle stages • Meaningless for negative earnings or negative growth}