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The Price/Earnings ration (PE ratio) is the price of stock divided by the past or future earnings. For example, if the price of Dell is $100 and the company earned $10 per share over the past 12 months, then the trailing 12 month ratio would $100/10, or 10.
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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.
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 the average PE ratio of hedge funds?
1.0
What are the relevant cash flows for valuing a share of common stock?
A common valuation mechanism is the ratio of a company's price to its measured or expected earnings. This is the PE ratio. One problem with the PE ratio is that it's easy to manipulate reported earnings on a balance sheet, even while following generally accepted accounting practices. Other people like to use Free Cash Flow, which measures how much real money a company can actually produce in a year. That's much more accurate. Beyond free cash flow, some people use a metric called owner earnings, which measures how much real money a business can return to its owners every year in the form of dividends, reinvestment in the company, or buying back stocks. You can find a lot of information on these metrics online. PE is a decent first way to look at a company, but even doing some basic math for free cash flow will help you figure out whether a stock is wildly over- or underpriced.
Bavarian sausage inc has 100000 shares of common stock outstanding but no preferred stock the current price of Bavarian's common stock is 15 what is the company's PE-ratio?
11.90
What is Costco's PE Ratio?
As of 4-27-07, Costco's PE ratio is 23.75.
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 average PE ratio for the manufacturing industry?
one million dollars
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 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.
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
What are the relevant cash flows for valuing a share of common stock?
A common valuation mechanism is the ratio of a company's price to its measured or expected earnings. This is the PE ratio. One problem with the PE ratio is that it's easy to manipulate reported earnings on a balance sheet, even while following generally accepted accounting practices. Other people like to use Free Cash Flow, which measures how much real money a company can actually produce in a year. That's much more accurate. Beyond free cash flow, some people use a metric called owner earnings, which measures how much real money a business can return to its owners every year in the form of dividends, reinvestment in the company, or buying back stocks. You can find a lot of information on these metrics online. PE is a decent first way to look at a company, but even doing some basic math for free cash flow will help you figure out whether a stock is wildly over- or underpriced.
What is a stock multiple?
A stock multiple is the ratio of a stock's price to various other financial measures. Most commonly used are price-to-book, which is the total value of a company's stock vs. its book value, and price-to-earnings or PE ratio.
Bavarian sausage inc has 100000 shares of common stock outstanding but no preferred stock the current price of Bavarian's common stock is 15 what is the company's PE-ratio?
11.90
