Price-To-Research Ratio
A measure of the relationship between a company's market capitalization and research and development (R&D) expenses. Investopedia Says:
The price-to-research ratio is of greatest importance in research based businesses, such as pharmaceutical companies. It is generally recognized that, in an industry heavily dependent on R&D, a price-to-research ratio is an important indication of a company's ability to generate future profits. However, even if this indication looks favorable, it cannot guarantee the success of future product innovations. A large amount of spending on R&D does not necessarily mean future profits are definite. Related Terms:
Book Value
Market Capitalization
Market Value
Price Multiple
Price-Earnings Ratio - P/E Ratio
Price-To-Book Ratio - P/B Ratio
Research And Development |