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What is a stocks PE ratio?

Updated: 8/21/2019
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Q: What is a stocks PE ratio?
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Define low PE ratio.?

A PE ratio is the price to earnings multiple for a stock. It is the current stock price divided by the earnings per share for the past 4 full quarters reported. So, if a stock is trading at $15 a share, the company earned $5 million dollars over the last 4 quarters and the company has 5 million shares outstanding, then the PE ratio would be 15 (15 / (5/5)). A low PE ratio then is a multiple that considers the stock cheap relatively, either to all other stocks, to other stocks in its industry, or to its growth prospects.


What is Costco's PE Ratio?

As of 4-27-07, Costco's PE ratio is 23.75.


What is a PE ratio?

pe's ratio is excess:size reduction i think it stands for PHYSICAL EDUCATION which means physical= move education = learning


Is a PE ratio expressed as a dollar?

No. If it is a ratio (as it is) then it has no units: it is a pure number.


Is lower P E advisable for investments?

The PE ratio is a valuation metric that compares a company's price-earnings ratio with its projected growth rate. Small, high-growth stocks generally trade at higher PE's compared to the Large-caps. If the PE ratio is around 1, the company is considered fairly valued. A PE ratio that is much higher than 1 indicates an overvalued company, and a PE below 1 indicates an undervalued company. While the PE ratio can effectively provide insight in certain evaluations, it is limited by its overriding focus on earnings growth. Revenue growth, cash flow, dividends, debt, and numerous other factors are also critical in determining value. Additionally, while PE is useful for smaller companies it may be misleading for big-caps, since sustained growth is less important to their total returns. PE is most useful when supplementing a thorough discounted cash flow analysis or relative valuation.


What is the historic PE Ratio for the Nasdaq?

30


What is the historic PE Ratio for the semiconductor industry?

The semiconductor industry is divided into many different sectors. The PE ratio varies as far as trailing and foreword are concerned. However, the semiconductor industry toggles between 42 and 45 PE ratio, which is significantly stablein comparison.


What is the average PE ratio of hedge funds?

1.0


Investment in previously issued stocks is carried out be means of the?

my pe***lol secondary market


For investing, what stocks will give me the best value?

Stocks with the best value are stocks with the highest annual net revenue per share to stock price ratio. Annual debt must be subtract from net revenue before ratio is determined.


What They Don't Teach You in School?

Out of all of the things that they don't teach you in school, how to pick stocks may be one of the worst. Most schools do not even touch on the subject. Therefore, you have to take this upon yourself to be able to figure everything out and choose the right stocks. When trying to figure out how to pick the right stocks the main thing that you want to look for are stocks that are particularly undervalued. This can be most simply measured by their price to earnings (PE) ratio. That number lets you know how many times the earnings number the stock price is trading at. The lower the PE, the better the bargain. This is just one method to use of course, but it is a highly effective one as well.


What is the average PE ratio for the manufacturing industry?

one million dollars