The simpler and clearer the explanation, the better. Thanks.
Answers: P/E = Price per share / Earnings per share
The earnings number is usually for the trailing year. So if a company reported its quarterly profits today, you would also add within its previous 3 quarters' earnings, to go and get the earnings per share (EPS) number.
The thought trailing P/E is to be able to know how much you're paying for each section of earnings (net income) that the company earn for its stockholders. Typically, companies that are growing quickly and expected to verbs to grow quickly own a higher P/E ratio, as culture feel that the company's growth justify a higher price relative to income.
P/E is also useful within comparing two similar companies, like for example Coca-Cola and Pepsi.
For more info on P/E, you can pop in the link below:
P/E is Price to Earnings. You find it resembling this:
P = the share price (this changes at adjectives times), you can find it on the performance chart
E = the returns per share (this changes every quarter), profits per share is the company's net income divided by the number of adjectives shares outstanding (these numbers can be found at the bottom of each company's income statement)
The P/E is the price-earnings ratio which is the fraction of the stock price over proceeds per share.
Say a stock trades at $20.01 and earns $1.16 per year. You would pinch 20.01 (price) divided by 1.16 (earnings) which makes 17.25 (P/E).
The ratio also tell you that the company has to earn $1.16 every year for 17.25 years to earn today's share price. ($1.16 times 17.25 years = $20.01)
The ratio is one of the indicators that inform you how "expensive" a stock is. The higher the P/E ratio, the more expensive the stock.
P/E is Price to Earnings. Price per share divided by income per share. This is the ratio which compares the price of the stock to the company's earnings. So, a giant P/E would say that the investor is paying MORE per section of earnings than for a lower one.
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Answers: P/E = Price per share / Earnings per share
The earnings number is usually for the trailing year. So if a company reported its quarterly profits today, you would also add within its previous 3 quarters' earnings, to go and get the earnings per share (EPS) number.
The thought trailing P/E is to be able to know how much you're paying for each section of earnings (net income) that the company earn for its stockholders. Typically, companies that are growing quickly and expected to verbs to grow quickly own a higher P/E ratio, as culture feel that the company's growth justify a higher price relative to income.
P/E is also useful within comparing two similar companies, like for example Coca-Cola and Pepsi.
For more info on P/E, you can pop in the link below:
Where should a setting up investor invest? CDs? Stocks? Foriegn currencies?
P/E is Price to Earnings. You find it resembling this:
P = the share price (this changes at adjectives times), you can find it on the performance chart
E = the returns per share (this changes every quarter), profits per share is the company's net income divided by the number of adjectives shares outstanding (these numbers can be found at the bottom of each company's income statement)
Do u guess India should increase it's regulated Fuel Prices?
The P/E is the price-earnings ratio which is the fraction of the stock price over proceeds per share.
Say a stock trades at $20.01 and earns $1.16 per year. You would pinch 20.01 (price) divided by 1.16 (earnings) which makes 17.25 (P/E).
The ratio also tell you that the company has to earn $1.16 every year for 17.25 years to earn today's share price. ($1.16 times 17.25 years = $20.01)
The ratio is one of the indicators that inform you how "expensive" a stock is. The higher the P/E ratio, the more expensive the stock.
I wanna buy some stocks, where on earth Should I Start?
P/E is Price to Earnings. Price per share divided by income per share. This is the ratio which compares the price of the stock to the company's earnings. So, a giant P/E would say that the investor is paying MORE per section of earnings than for a lower one.
Resolved Questions: