An investor is looking for a stock valuation multiple that will never output a negative stock price. Which of the following ratios will never be negative?

Note: Enterprise value equals the firms market asset value less cash and marketable securities such as certificates of deposit and treasury notes.

The ratio that will always be positive is:

Select one:

a. Price to earnings ratio.

b. Price to sales ratio.

c. Enterprise value to EBITDA ratio.

d. Enterprise value to EBIT ratio.