> For the complete documentation index, see [llms.txt](https://docs.thinkandtrade.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thinkandtrade.net/fundamental-growth-addon/indicators/ratios.md).

# Ratios

The ratio indicator can put P/S and P/E ratio in the chart, this is calculated with the current price and the fundamental data.

## Chart View

![](https://2765934047-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MRga-Gtsno0FQ49cfjf%2F-MTjXh57BzdHzB14GMWz%2F-MTjrTCbBZetgVbqsroG%2FRatios.png?alt=media\&token=711044ab-a90d-4dcd-9f9c-2ab0383d1783)

The ratio indicator can display the P/E ratio and the P/S ratio in the chart at the current price. You can choose between an annual calculation using the last [annual earnings](/fundamental-growth-addon/indicators/earnings-yearly.md) or a rolling calculation using the[ quarterly earnings](/fundamental-growth-addon/indicators/eps.md). Rolling adds the last 4 earnings together to determine the value.

{% hint style="info" %}
If desired, the P/B ratio or similar can also be included in future versions.
{% endhint %}

## Settings

#### Colors

* *Axis Color* \[Color]: Colors of the underrated or overrated axes (Default Dark Gray).
* *Overvalued Color* \[Color]: color above the overvalued axis (Standard Tomato)
* *Neutral Color* \[Color]: color of the gradient between the axes (default Cadet Blue).
* *Undervalued Color* \[Color]: color below the underrated axis (Standard Lawn Green)

#### Input Parameters

* *Ratio* \[P/E Ratio, P/S Ratio]: Should P/E ratio or P/S ratio be calculated?
* *Calculation* \[Rolling, Yearly]: To be calculated on a rolling basis using the sum of the last 4 quarters or via annual earnings
* *Overvalued* \[Value]: At what value is a share overvalued?
* *Undervalued* \[Value]: At what value is a share underated?

{% hint style="info" %}
Typically, P/E is said to be overvalued at > 30 and undervalued at < 10 - but this varies from sector to sector.&#x20;

Typically, P/S is said to be overvalued at > 2 and undervalued at < 1 - but this varies from sector to sector.
{% endhint %}

#### Api-Key

* *Api Key* \[Key]: Is empty if no api key has been set yet, if the api key has already been set in at least one indicator, all others adopt this key.

## Return Values

{% hint style="info" %}
If the ratio is needed as a return value, it can be included in future versions.
{% endhint %}