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The simple answer to this question is that absolute P/E, which is the most quoted of the two ratios, is the price of a stock divided by the company's earnings per share (EPS). This measure indicates how much investors are willing to pay per dollar of earnings. The relative P/E ratio, on the other hand, is a measure that compares the current P/E ratio to the past P/E ratios of the company or to the current P/E ratio of a benchmark. Let's look at both absolute and relative P/E in more detail.
Absolute P/E The nominator of this ratio is usually the current stock price, and the denominator may be the trailing EPS (from the trailing 12 months [TTM]), the estimated EPS for the next 12 months (forward P/E) or a mix of the trailing EPS of the last two quarters and the forward P/E for the next two quarters. When distinguishing absolute P/E from relative P/E, it is important to remember that absolute P/E represents the P/E of the current time period.
For example, if the price of the stock today is $100, and the TTM earnings are $2 per share, the P/E is 50 ($100/$2).
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Why is PE good for you?
AnswerPE is very good for you. Research shows that PE not only keeps you fit and healthy, but it also helps improve you literacy, numeracy and technology skills. It will keep you slim and it's FUN!
Did James naismith get paid?
Yes nad no he was paid for his PE job but not for making the game
Why does a rock layer containing same sized particles have high porosity?
it is simply pie. the answer is pe
Physical features of image of germania.Dar Germanistii il vor pe Aur Vlad Claudiu.Si Aur Vlad Claudiu vrea sa invete limba Germana.?
Germanistii il vor invata pe Aur Vlad claudiu din Romania.
What subject was Martin Luther King Jr. good at?
reading
Difference between PE and HDPE pipes?
what is the difference between the PE pipe and HDPE pipe.
What do they call PE in France?
In France, Physical Education is known as "Education Physique" or "EPS" (Education Physique et Sportive).
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.
Is there a difference between PE and sports?
PE is physical education so I say it isn't
What is Costco's PE Ratio?
As of 4-27-07, Costco's PE ratio is 23.75.
What does EPS mean in french?
it basically means PE (education physique et sportive)
How do you say p.e. in french?
education physique
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.
If there is 48000 in earnings available to common stockholders and the firm's stock has a PE of 20 times earnings per share what is the current price of the stock?
There are two ways to answer this: Short and Long. First, short: PE = PPS/EPS ; PE = 20(EPS) as well. Substituting 20(EPS) for PE gives: 20(EPS) = PPS/EPS ; Multiply EPS on both sides to eliminate the fraction on the right side: 20(EPS)2= PPS So, Price per share = 20 times Earnings per share2 Long way: EPS = EAC/#shares ; Since we know EAC, it becomes EPS = 48,000/#shares Since PE = 20(EPS) using what we got from the short way, we can subsitute the EPS fraction into the left side: 20(48,000/#shares) = PPS/(48,000/#shares) ; Of course we would simplify it a little bit, multiplying 20 and 48,000 and multiplying the inverse of the denominator: 960,000/#shares = PPS * #shares/48,000 ; Multiply 48,000 on both sides and get: 46,080mil/#shares = PPS * #shares ; Multiply #shares on both sides and get: 46,080mil = PPS * #shares2 ; Finally, divide by #shares2 to isolate PPS and you get: PPS = 46,080mil/#shares2 So, you have PPS = 20(EPS)2 or PPS = 46,080mil/#shares2 Either way, you can't get a number answer because of the lack of data on the number of shares. If we had the number of shares outstanding, it would be pretty easy. I know it's an old question, but still, if anyone has a better way or a correction to make on what I did, feel free to do so.
What is the historic PE Ratio for the Nasdaq?
30
What is the difference between normal kickball and the PE version?
there are corners in the P.E one understand
