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 PEG ratio - Wikipedia, the free encyclopedia
One reason investors may prefer the PEG ratio over measures such as earnings, revenues, tangible assets, or book value to price (market cap) is that such measures do not account for a company's potential for growth.
In finance, a PEG ratio is a financial ratio of a company.
Additionally, the PEG ratio is often considered less appropriate for measuring income investments.
http://en.wikipedia.org/wiki/PEG_Ratio   (362 words)

  
 P/E ratio - Wikipedia, the free encyclopedia
The average U.S. equity P/E ratio is 14, meaning it takes about 14 years for a company you purchase to earn back your full purchase price for you.
The appropriate calculation for preferreds is the preferred dividend coverage ratio.
The PE is calculated primarily for common shares, not for preferred shares.
http://en.wikipedia.org/wiki/P/E   (2042 words)

  
 PE Ratio (Price Earnings Ratios) for the SP500
The PE ratio is one of the most widely watched measures of valuation for both the stock market as a whole and individual stocks.
So the P/E ratio is calculated as 1038.55 / 36.79 = 28.23.
This means that if you are investing in the SP500 via a stock index fund, you are paying $28.27 for each dollar of earnings that those 500 companies will have this year.
http://www.lowrisk.com/sp500pe.htm   (277 words)

  
 The Telegraph - Calcutta : Business
A PE ratio fund is a fund that seeks to analyse the market on the basis of the PE ratios of stocks and invest in stocks that have the best potential of realising their values.
PE ratio is the term used for the ratio of market price of a share to earnings per share (EPS).
A forward PE ratio is calculated as the ratio of the last traded market price of the share to its projected EPS for the current or future financial year.
http://www.telegraphindia.com/1040517/asp/business/story_3252685.asp   (340 words)

  
 Price Earnings Ratio (PE)
P/E ratio is used as a measurement of the relative cost of the stock.
Whether the calculating for the whole company or a per-share basis, the value is the same.With a high P/E ratio, the market is more willing to pay for each dollar of annual earnings.
The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period.
http://www.chartfilter.com/fundamentals/pe.htm   (349 words)

  
 Invest FAQ:Analysis:Price-Earnings (P/E) Ratio
P/E is shorthand for the ratio of a company's share price to its per-share earnings.
PE is a much better comparison of the value of a stock than the price.
For example, a P/E ratio of 10 means that the company has $1 of annual, per-share earnings for every $10 in share price.
http://invest-faq.com/articles/analy-pe-ratio.html   (796 words)

  
 PE Ratios
A leading PE ratio is calculated by dividing the current price of the stock by the company's estimated earnings per share for the coming fiscal year.
A trailing PE ratio is calculated by dividing the current price of the stock by the company's earnings per share over the past fiscal year.
The median PE ratio is a Value Line concept calculated by taking a rounded average of four middle values of the range of average P/E ratios for the company over the past 10 years.
http://home.mn.rr.com/eduvest/pe.htm   (891 words)

  
 How Important Is PE Ratio
PE is a simple ratio of a company share price to its earning per share.
PE ratios may move individually based on one company performance or collectively based on the market.
Companies’ PE ratio are one piece of the puzzle, and have to be taken with other factors, such as price-to-book ratio, sales projection, long term interest rate and inflation.
http://www.arabnews.com/?page=6§ion=0&article=49301&d=2&m=8&y=2004&pix=business.jpg&category=Business   (779 words)

  
 PE ratio
The PE ratio is one of the most widely watched measures of valuation for both the stock market as a whole and individual stocks.
Due to these hopefully temporary problems, the average company's PE ratios will be restated and in many cases accounting charges will also have to be taken.
The PE ratio (Price / Earnings ratio) is the price of a stock divided by past or future earnings (PE ratio = Price / Earnings).
http://www.getfolio.com/investment_stocks/pe-ratio.asp   (537 words)

  
 speculativebubble.com - more on the pe ratio
P/E ratio - This is the current price of the stock divided by the earnings for the year.
If your stock has a P/E ratio of 20, that means that with its current earnings, it will take twenty years for the company to earn back what you are paying for it (at its current stock price).
This is a good indication of the market's P/E. If a company has no earnings yet, they won't have a P/E so in the newspaper this column will list --- or N/A. The P/E ratio is used in fundamental analysis.
http://www.speculativebubble.com/pe2.shtml   (435 words)

  
 P/E Ratio
For example, a company with a higher PE ratio than its competitors could be an indication that it has a value placed on it based on higher than expected growth potential than competitor companies.
A PE ratio measures the expectation of company performance with regard to its earnings growth potential and risk.
It is calculated by dividing the share price by the annual earnings per share.
http://managers-net.com/pe_ratio.html   (206 words)

  
 RATIONAL STOCK VALUATION
The PE ratio is a parameter that measures the price of the stock relative to one year of earnings.
The present PE ratio (i=0 for present) is the market cost divided by how much the company earned in the past twelve months.
Another biased selection that these pundits will do is they will compare their stock's PE ratio to another stock which has a very high PE as a way to claim that the selected stock price should go higher.
http://members.aol.com/SHinrichs9/stocks/ratval.htm   (7988 words)

  
 Moneyweb: South Africa's leading source for independent investment information
The PE ratio is one of many tools investors have at their disposal to assess whether a company is expensive or not.
Dividing the share price by the Heps, the ratio is 23,4 times - it will take just over 23 years - at current profitability rates - for your investment in the shares to be paid back through the company's earnings.
To calculate a PE ratio, one divides the share price by the most recent earnings per share figure.
http://www.moneyweb.co.za/shares/share_focus/492629.htm   (452 words)

  
 EDMP Inc. - Demystifying the PE Ratio
The PE Ratio's value is as a barometer or tool used to measure important investment principles relative to each other.
It is important to note, however, that a higher PE Ratio does not necessarily mean that the company has a higher valuation or that it is more expensive than a company with a lower PE Ratio.
If its PE Ratio is 20, then you pay $20 for every dollar's worth of that company's earnings or profits, and so on.
http://www.edmpinc.com/generalinvesting/demystifying.htm   (2405 words)

  
 PEG Ratios
In the simplest form of this approach, firms with PE ratios less than their expected growth rate are viewed as undervalued.
The average PEG ratio for the software sector is 1.77.
Corollary 1: The company that looks most under valued on a PEG ratio basis in a sector may be the riskiest firm in the sector
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/lectures/peg.htm   (872 words)

  
 >>Domain Mart - Domain Names Are Cheap!
The PE ratio is the multiple obtained by dividing the market price per share by the earnings per share over a period, which is equivalent to an asset’s market value divided by its earnings.
For investors who subscribe to the value investing school, one measure of value is the PE ratio.
For those investors who prefer to compare what they make on domain names to what they can earn on, say, bonds, they look at the earnings yield (which is the inverse of the PE ratio, i.e., the earnings divided by market price).
http://domainmart.com/news/PE_value.htm   (533 words)

  
 Money Terms - investment and finance explained
It is the ratio of the orders taken in a period to the amount invoiced over the same period.
The ratio of a bank's capital to its assets.
This ratio is most commonly used in the semiconductor industry, although it and similar ratios are applicable to any industry that takes orders significantly in advance of invoicing....
http://moneyterms.co.uk   (3384 words)

  
 Beginner Investing: PE ratio
The price/earnings ratio, also known as the multiple, gives investors an idea of how much they are paying for a company's earning power.
He also states that you should not invest based only on P/E, but it is a variable to consider.
For instance, a stock selling for $20 a share that earned $1 last year has a trailing P/E of 20.
http://experts.about.com/q/Beginner-Investing-3253/PE-ratio.htm   (536 words)

  
 PE Ratio
PE ratio is a number which indicates how many number of times investors are paying against their earnings.
For example if a company earning per share is 15 and the market price is 300 rupees the PE ratio = 300 / 15 = 20.
Buying a small company in high PE ratio may yield good profits
http://www.elliottwaves.biz/pe_ratio.htm   (185 words)

  
 Understanding the Price-to-Earnings Ratio
The PE ratio also shows an investor how much he or she would pay today—remember that the "price" part of the PE ratio is just the stock’s market price—for a dollar’s worth of the company’s earnings.
The PE ratio helps investors even if the companies they’re looking at have different numbers of shares outstanding, and if their stock is trading at very different prices.
A forward PE ratio is only an estimate and is subject to change because actual company earnings are often different from analyst estimates.
http://googolplex.cuna.org/12433/cnote/story.html?doc_id=651   (2149 words)

  
 OptionSearcher.com - Articles
The Price/Earnings ratio or P/E ratio as it is commonly called is a measure of the stock’s market capitalization divided by it’s after tax earnings over a 12-month period.
An easier way to calculate the ratio is by simply taking the current stock price and dividing by the earnings per share for the past 4 quarters (12 months).
The ratio gives you an indication of how much you are paying for each dollar of the company’s earnings.
http://www.optionsearcher.com/edu-ViewArticle.asp?Article=19&Page=1   (608 words)

  
 Fool.com: Earnings-Based Valuations [Valuation]
There is a large population of individual investors who stop their entire analysis of a company after they figure out the trailing P/E ratio.
Since it is future growth that makes a company valuable to both an acquirer and a shareholder seeking either dividends or free cash flow to fund stock buybacks, this makes some degree of intuitive sense.
With no regard to any other form of valuation, this group of unFoolish investors blindly plunge ahead armed with this one ratio, purposefully ignoring the vagaries of equity analysis.
http://www.fool.com/School/EarningsBasedValuations.htm   (1332 words)

  
 Stock market guide - PE Ratio: - Price to Earning per share ratio
PE Ratio alters with every changing stock price.
But PE Ratio plays very important role in selecting a stock for investment or to sell a stock.
Imagine a shop near you is making a net profit of 100000 in a year.
http://www.stockmarketguide.org/forumsmg/topic.asp?TOPIC_ID=11   (551 words)

  
 Global markets: Fed Ratio (alias PE / Bond Yield)
In general these ratios should be lower where there is a tradition of profit maximisation, as in Anglo-Saxon countries, than in other countries where the interests of outside shareholders may take second place to tax minimisation.
It does so by comparing the PE ratio against short-term interest rates and also to the yield on long-term bonds, in those countries where there are active bond markets.
Please note that comparisons between countries are of limited value owing to differences in the reporting of corporate profits.
http://www.investors-routemap.co.uk/ChartFrame_stock_market_fed_ratio.htm   (474 words)

  
 Energy and protein requirements
Unless such ratios are empirically similar in all situations of interest (a hypothesis that can be examined through appropriate calculations), there can be no universal criterion of a suitable PE ratio (2–6).
Although the term “ratio” strictly implies a fraction, in existing usage numerical values are expressed as percentages.
This would be an example of an appropriate use of PE ratios in assessing the quality of diets.
http://www.fao.org/DOCREP/003/AA040E/AA040E11.htm   (3090 words)

  
 People's Daily Online -- Reduced PE ratio of Chinese stocks attracts investor attention
The PE ratio of Hushen 300 Index stands at 14.20 times, and it would lower to 10.92 times if potential compensation rate of 30 percent in the ongoing reform to solve the split share structure was taken into account, according to the newspaper published by Xinhua.
The Chinese A-share market has become enticing as the price earning ratio (PE ratio) of Hushen 300 Index, which reflect the whole fluctuation of China's Shanghai and Shenzhen Stock Exchanges, and is now about half of that of their equivalents on the US stock market, China Securities Journal reported.
Citing figures released by the Shenzhen Zhongzheng Investment Consulting Co., the newspaper said the PE ratio of the Standard & Poor 500 Index, which covers shares of 500 major US listed companies, stands at 19.19 times.
http://english.peopledaily.com.cn/200505/26/print20050526_186973.html   (583 words)

  
 P/E Ratio
Let's look at the PE ratio of some companies and analyze what its value means.
Most investors are taking risks by investing in companies with PE ratios greater than 100.
One obtains a company's PE ratio by dividing the stock's price by its earnings per share.
http://www.teenanalyst.com/stocks/peratio.html   (451 words)

  
 Ask Matt
Finally, to get the historical PE, divide the stock price of $39.45 by the earnings per share of $1.34 to calculate the 29.4 PE Calculating the forward PE also starts with the stock price, which will again be the numerator.
A: The price-to-earnings, or PE ratio, is a measure of how much investors are paying for a company's earning power.
Don't assume that a stock is too expensive, even if it has a high PE For instance, tech firms will often sport their highest P-Es right before the stock is about to rally because earnings are at their lowest.
http://www.usatoday.com/tech/techinvestor/2002/03/14/askmatt.htm   (537 words)

  
 Life Beyond the PE Ratio
The PE ratio has already incorporated into the price of the scrip any news –good or bad and projected earnings of the company for the coming year.
After all, earnings are the bottom line and how much profit a company earns, is what separates the winners from the losers.
Simply put, it is how much investors are willing to pay for a rupee of the company's earnings.
http://www.karvy.com/articles/lifebeyondpe.htm   (731 words)

  
 Curious Cat Investing Library - Definitions of Investment Terms: PE Ratio
PE ratio (Price to Earnings ratio) - Stock price divided by per share earnings over the past year.
For the PE ratio the actual earnings are used (official announced earnings not projected earnings).
"forward PE ratio" - Stock price divided by estimated earnings in the next 12 months (or for a fiscal year for which actual earnings are not yet available.
http://www.curiouscat.com/invest/peratio.cfm   (281 words)

  
 Price-Earnings Ratio - P/E Ratio
It is important that investors note an important problem that arises with the P/E measure so not to base their investment decision on this measure alone.
If a company were currently trading at a multiple (P/E) of 20, the interpretation is that an investor is willing to pay $20 for $1 of current earnings.
A valuation ratio of a company's current share price compared to its per-share earnings.
http://www.investopedia.com/terms/p/price-earningsratio.asp   (396 words)

  
 The Hindu Business Line : Pioneer ITI PE Ratio Fund: Passive investing the drawback
Facts: Pioneer ITI PE Ratio fund is in the nature of a balanced fund.
It is structured so that if the PE ratio falls within a band, the equity portion will not exceed a certain percentage.
One, the equity portion of the fund will be invested in a passive manner.
http://www.blonnet.com/iw/2002/02/17/stories/2002021700280900.htm   (604 words)

  
 PE Ratio
Some investors use the P/E ratio to measure the value of a stock.
Remember, over the long-term, an oversold stock may rise in price to return to a fair P/E level.
Many things can change about the company in the meantime, which puts your money at risk.
http://www.legitimateopportunities.com/invest/fundanal/peratio.htm   (251 words)

  
 PE ratio
Although PE is the most widely used valuation ratio and has the advantage of being comparatively simple it is not the only valuation ratio and investors should use other as well.
A higher PE means that the same share of a company’s profits will cost a prospective shareholder more.
The other common adjustment is the use of a diluted EPS, which is the share of profits of each share taking into account shares that are expected to be issued - for example as a result of share options or the conversion of convertible bonds.
http://moneyterms.co.uk/pe   (451 words)

  
 SiliconBeat: Baidu's 1,000 PE ratio. Sure, that's sustainable...
Looks like P/E Ratio is the same as the rate our earnings (profits) are growing.
In theory, markets are efficient, and the valuation should account at least the next few years of growth, with some speculation of years beyond, AND a discount for risk.
So to get the PE ratio, you divide price by its earnings.
http://www.siliconbeat.com/entries/2005/08/08/baidus_1000_pe_ratio_sure_thats_sustainable.html   (1624 words)

  
 B1, B2 stocks storm up PE chart, beat A group peers - The Economic Times
Across sectors, companies in the B1 and B2 group have price earning (PE) ratios that are now higher than the ones seen for their counterparts in the A group.
The ratio is calculated as the market price of a particular share on a particular date divided by the earnings per share (EPS).
The ratio indicates how much investors are willing to pay for every rupee of earnings.
http://economictimes.indiatimes.com/articleshow/msid-957711,prtpage-1.cms   (527 words)

  
 The Motley Fool UK: Fool School 7/01/2002
The price to earnings ratio (P/E) is the most widely quoted number when investors attempt to put a value on a share.
It is often said that in a fairly valued situation the P/E should roughly equal a company's future EPS growth rate.
You can also calculate P/Es based on earnings estimates for the current year.
http://www.fool.co.uk/school/2002/sch020107.htm   (735 words)

  
 Chart of the Day - S&P 500 PE Ratio - www.chartoftheday.com
For the PE ratio to drop back down to the bottom of its trading range either earnings must improve or stock prices must decline.
The reverse has also been true with stock prices often rallying soon after the PE ratio was near the bottom of its trading range.
With earnings not expected to improve dramatically over the near-term, concern over relatively high PE ratios is likely to continue over the coming months.
http://www.chartoftheday.com/sample2.htm   (419 words)

  
 How to pick the right shares
The Price Earnings ratio of a stock is the market price divided by its EPS.
Now, RIL's EPS is expected to grow from Rs 54.7 (for FY 2005) to Rs 64.5 (for FY 2006).
Earnings Per Share is the net profit a company makes divided by the total number of its shares.
http://www.rediff.com/getahead/2005/aug/04bull.htm   (740 words)

  
 PE Ratio
PE ratio = Market price divided by Earnings per share
http://www.speculativebubble.com/terms/peratio.shtml   (10 words)

  
 2003 Annual Meeting of the American Accounting Association
Proponents of the PEG ratio underscore the fact that it takes account of differences in short-run earnings growth and thus it provides a ranking that is superior to the ranking based on PE ratios.
In recent years a variant of the PE ratio — the PEG ratio (which is the PE ratio divided by the forecasted short-term earnings growth rate) — has become a popular means of ranking stocks.
But even though the PEG ratio may provide an improvement over the PE ratio, it is arguably still too simplistic because it implicitly assumes that the short-run growth forecast also captures the long-run future.
http://aaahq.org/AM2003/abstract.cfm?submissionID=47   (265 words)

  
 PEG Ratio
This ratio is a lot like the P/E ratio which divides the earnings from the price.
If you've been investing for a little while now, you probably know what a P/E ratio is. The P/E ratio is not perfect because some companies are worth a high P/E and some aren't.
For example, if XYZ corporation has a P/E ratio of 26 (about average) and a growth rate of 15% per year, its PEG ratio would be 1.73 (26/15).
http://www.teenanalyst.com/stocks/pegratio.html   (355 words)

  
 Stock and Bond Market
Well, if P/E ratio changes drastically the bond rate will probably follow.
  The 20 year bond rate will most likely not influence the change in P/E ratio.
It seems that the 20 year bonds have been following the P/E ratios rather than vice versa.
http://students.uwsp.edu/jstro306/cis102/myproject_files/sheet003.htm   (85 words)

  
 Entreprenuers and Investors
Dividend Yield - this ratio gives the percentage return on the investment in a share of stock via dividends.
Price-Earnings (PE) Ratio - this ratio indicates the market price for $1 of earnings.
The dividend yield only protains to companies that pay dividends to shareholders.
http://www.personal.psu.edu/users/s/b/sbk142/business.htm   (355 words)

  
 What is a PE Ratio and is my stock's PE too high?
A price earnings ratio (PE) is calculated by dividing the market price per share by the current or a projected annual earnings per share.
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For instance, if your stock has a PE ratio of 50 as compared to an average of 20 for competitors, it would indicate that the market expects earnings growth of 50% compared to competitors that are expected to grow at 20%.
http://www.the-adviser.com/Stocks/highpe.htm   (286 words)

  
 Stocks Test
The forecasted price is equal to the given Price t plus Price t times the appropriate growth rate from section [5].
[3] In successive new columns to the right of DPS, compute for each firm (a) the PE Ratio, equal to Price divided by EPS; (b) the Yield, equal to DPS divided by Price; and (c) Value, equal to Price times the number of shares.
For example, an Over-the-Counter stock with a PE Ratio of 6 is expected to grow at only 14.0%.
http://www.lehigh.edu/sgb2/yesterday/public/www-data/excelTestStocks.html   (685 words)

  
 PE - Wikipedia, the free encyclopedia
PE ratio - price-to-earnings ratio (used in finance)
This page expands and disambiguates a two-letter combination which might be an abbreviation, an English word, a word in another language, any or all of these.
One of the two ancient Egyptian towns which merged to become Buto
http://en.wikipedia.org/wiki/PE   (192 words)

  
 Carl Elling asks, "What's the PEG ratio?"
PEG ratio is similar to the PE ratio, but some investors consider it a more reliable measure of a company's financial health.
Where PE is stock price divided by earnings per share, the PEG ratio is calculated by dividing the PE ratio by earnings growth.
The company hasn't had a chance to make a lot of money yet, so the astronomical PE ratio could be rationalized by the assumption that the company will, at some point, make money.
http://www.quote.com/qc/news/story.aspx?symbols=QUOTECOM:104&story=200301101420_QCM_QC-101200392017   (272 words)

  
 StockMarketTiming.com — PEs Marking The Ends of Past Bear Markets
Past as Prologue: P/E Ratios and Bond Yields at Past Market Troughs
The historic Treasury-note yields come from the Federal Reserve.
StockMarketTiming.com — PEs Marking The Ends of Past Bear Markets
http://www.stockmarkettiming.com/PE-ratio-table.html   (43 words)

  
 Aussie Stock Forums - PE ratio
Often if a company has released a profit target for the year I will calculate my own PE figure based on the company achieving those targets and compare this to the sector average to get an idea of how it will perform in relation to its peers.
Personally when I buy a stock for a MT/LT hold on fundamentals, PE figures very highly as a stock with a low PE would be more leveraged for a rise with positive news or added value to its business.
If a stcok has fallen causing the PE to rise, it doesn't always make it a bargain buy - there could be a continued deteriation in the prise or the underlying fundamentals of the company will remain poor, justifying its fall.
http://www.aussiestockforums.com/forums/showthread.php?t=515   (251 words)

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