explain p/e ratio
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Your Money The price/earnings ratio or P/E is important as a measure of whether a share or an overall stock market looks like good value of not. The price (P) bit is the price of the share and the earnings (E) bit refers to the earnings per share.he price/earnings ratio or P/E is important as a measure of whether a share or an overall stock market looks like good value of not. The price (P) bit is the price of the share and the earnings (E) bit refers to the earnings per share.
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- If the stock is selling for $60 per share, and the company’s earnings. are $2 per share, the ratio of price ($60) to earnings ($2) is 30 to 1. In common usage, we would say. the “P/E ratio is 30.”. Financial ratio analysis can be used in two different but equally useful ways.
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How To Use The P/E Ratio And PEG To Tell A Stock's Future It is common practice for investors to use the price-to-earnings ratio (P/E ratio or price multiple) to determine if a company's stock price is over or undervalued. Companies with a high P/E ratio are typically growth stocks.
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Price earnings (P/E) ratio The price earnings ratio of the company is 10. It means the earnings per share of the company is covered 10 times by the market price of its share. In other words, $1 of earnings has a market value of $10. P/E ratio is a very useful tool for financial forecasting.
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Summary Stock Quotes P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 13.31. Forward P/E(1y) A widely used stock evaluation measure.
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P/E Ratio P/E Ratio. The Price/Earnings Ratio (or PE Ratio) is a widely used stock evaluation measure. For a security, the Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS (Earnings Per Share) Estimate for the specified fiscal time period. Learn More.
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- P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 16.89. Forward P/E(1y) A widely used stock evaluation measure.
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- Well, for starters, note that the ratio expresses the stock price in terms of the earnings per share (EPS). The P/E ratio is a common measure of the value of stocks. Thus, we deduce (correctly) that the P/E uses the earnings of a company to value that company's stock.Simple and profound.he P/E ratio is such a widely used measure that the Market is obviously inclined to agree with us. Earnings are indeed at the heart of the matter of valuing a company's stock. Other measures exist, of course. You might wish to value a real-estate company's stock not off its earnings but off the value of its land.
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- P/E Ratio (TTM) The Price to Earnings (P/E) ratio, a key valuation measure, is calculated by dividing the stock's most recent closing price by the sum of the diluted earnings per share from continuing operations for the trailing 12 month period. Earnings Per Share (TTM)
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Summary Stock Quotes P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 40.79. Forward P/E(1y) A widely used stock evaluation measure.
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- The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings.The price-earnings ratio can be calculated as: Market Value per Share / Earnings per Share.For example, suppose that a company is currently trading at $43 a share and its earnings over the last 12 months were $1.95 per share. The P/E ratio for the stock could then be calculated as 43/1.95, or 22.05.he price-to-earnings (P/E) ratio is calculated by dividing a company’s stock price per share by its earnings per share (EPS), ...
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P/E Price-to-earnings ratio (P/E). The price-to-earnings ratio (P/E) is the relationship between a company's earnings and its share price, and is calculated by dividing the current price per share by the earnings per share. A stock's P/E, also known as its multiple, gives you a sense of what you are paying for a stock in relation to its earning power. For example, a stock with a P/E of 30 is trading at a price 30 times higher than its earnings, while one with a P/E of 15 is trading at 15 times its earnings.
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- $ 29,030,715,676. P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 20.39. Forward P/E(1y) A widely used stock evaluation measure.
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What is the 'Price-Earnings Ratio - P/E Ratio' The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings. The price-earnings ratio can be calculated as: Market Value per Share / Earnings per Share. For example, suppose that a company is currently trading at $43 a share and its earnings over the last 12 months were $1.95 per share. The P/E ratio for the stock could then be calculated as 43/1.95, or 22.05. EPS is most often derived from the last four quarters.
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- $ 472,360,416. P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple.
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P/E ratios A company's price/earnings (P/E) ratio can be calculated by dividing the current market price of a share by the earnings per share (EPS). A high P/E ratio means the company is highly-rated by the stock market, suggesting that investors think its prospects are good.
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Summary Stock Quotes $ 501,903,061,809. P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 30.64.
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- $ 2,822,392,713. P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 19.81. Forward P/E(1y) A widely used stock evaluation measure.
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Summary Stock Quotes P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. 22.83. Forward P/E(1y) A widely used stock evaluation measure.
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- It depends.The price-to-earnings ratio (P/E ratio) is calculated as a stock's current share price divided by its earnings per share (EPS) for a twelve-month period (usually the last 12 months, or trailing twelve months (TTM)).
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Valuation The most common valuation method is the price earnings ratio (P/E), which is the price divided by earnings per share (EPS). But this valuation can miss the mark because of accounting vagaries and the time-span chosen for EPS.
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Summary Stock Quotes $ 597,530,568. P/E Ratio P/E Ratio is a statistic calculated by dividing the price of a stock by the reported actual earnings per share of the issuing firm (not the same as the projected P/E ratio); it is also called the multiple. NE. Forward P/E(1y) A widely used stock evaluation measure.
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Price to Earnings Ratio (P/E Ratio) Definition. The price to earnings ratio (P/E ratio) is the ratio of market price per share to earning per share. The P/E ratio is a valuation ratio of a company's current price per share compared to its earnings per share.It is also sometimes known as “earnings multiple” or “price multiple”.efinition. The price to earnings ratio (P/E ratio) is the ratio of market price per share to earning per share. The P/E ratio is a valuation ratio of a company's current price per share compared to its earnings per share.
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P/E ratio - Wikipedia, the free encyclopedia The P/E ratio of a company, which is a comparison of the cost of the company's stock and its trailing 12-month earnings per share, is calculated by dividing these two figures.
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Price to Earnings Ratio About Price to Earnings Ratio. The price to earnings ratio (PE Ratio) is the measure of the share price relative to the annual net income earned by the firm per share.
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- P/E Ratio =. Earnings per Share (EPS) Most of the time, the P/E is calculated using EPS from the last four quarters. This is also known as the trailing P/E. However, occasionally the EPS figure comes from estimated earnings expected over the next four quarters.