How to calculate the P E ratio and how to calculate the P E ratio

Updated on Financial 2024-02-10
7 answers
  1. Anonymous users2024-02-06

    P/E ratio = stock price Annual earnings per share (EPS).

    When calculating, the stock price is usually based on the latest ** price, and in terms of EPS, if it is calculated according to the published EPS of the previous year, it is called the historical P/E ratio. The EPS estimates used to calculate the estimated P/E ratio are generally based on the consensus estimates, which are the average or median estimates obtained by the institutions that track the company's performance by collecting the ** of multiple analysts. There is no set criterion for what constitutes a reasonable P/E ratio.

    The price-to-earnings ratio is the ratio of some price per share to earnings per share. The P/E ratio is widely talked about in the market, and usually refers to the static P/E ratio, which is usually used as an indicator to compare whether different ** are overvalued or undervalued. When using the price-to-earnings ratio to gauge the quality of a company**, it's not always accurate.

    It is generally believed that if a company's P/E ratio is too high, then it has a bubble and is overvalued. When a company is growing rapidly and its future performance growth is very promising, when using the P/E ratio to compare the investment value of different **, these ** must belong to the same industry, because the company's earnings per share are relatively close at this time, and it is effective to compare them with each other.

  2. Anonymous users2024-02-05

    The price-to-earnings ratio is the price-to-market earnings ratio, which is the ratio of the latest annual earnings per share of a listed company to the company's latest stock price. The price-earnings ratio is an important indicator to analyze the high and low market price, and it is a way to measure the value of an investment. It reflects the yield of a certain ** in a certain period of time, and has become a comprehensive indicator of many factors in the market.

    It is generally believed that it is normal for the P/E ratio to remain between 30.

    Formula: The company's latest market price The company's latest annual earnings per share Example: XYZ company's earnings per share in 2006 was yuan, and the stock price was 10 yuan. Earnings per share in 2007 were RMB. The current share price is $12. The price-to-earnings ratio of XYZ is :

    The 2006 P/E ratio was 10x.

    The 2007 P/E ratio is 12x.

    Although the stock price in 2007 was higher than the stock price in 2006, the price-to-earnings ratio fell instead. From the perspective of the price-earnings ratio alone, XYZ is more valuable to invest in '07 than '06.

  3. Anonymous users2024-02-04

    A negative P/E ratio indicates a loss!

    P/E ratio = market price earnings per share.

  4. Anonymous users2024-02-03

    P/E Ratio Common stock per market Common stock earnings per share per year.

    The numerator in the above equation is the current price per **, and the denominator can be used to make a profit in the last year, or it can be used to make a profit in the next year or years. The price-to-earnings ratio is one of the most basic and sensitive indicators for estimating the value of common stock.

    It is generally believed that it is normal for the ratio to remain between 20 and 30, and it is worth buying because the stock price is low and the risk is small; If it is too large, it means that the stock price is high and the risk is high, so you should be cautious when buying. However, high P/E ratios are mostly popular stocks, and low P/E ratios may be unpopular stocks.

  5. Anonymous users2024-02-02

    P/E Ratio – The P/E ratio is the ratio of a certain price per share to earnings per share. (P/E ratio per common share** common stock earnings per year) Answer The numerator in the above formula is the current price per **, and the denominator can be used for the profit of the most recent year, or the profit of the next year or years. The price-to-earnings ratio is one of the most basic and important metrics for estimating the value of common stock.

    It is generally believed that it is normal for the ratio to remain between 20 and 30, and it is worth buying if the stock price is low and the risk is small; If it is too large, it means that the stock price is high and the risk is high, so you should be cautious when buying. However, high P/E ratios** are mostly popular stocks, and low P/E ratios** may be unpopular stocks.

  6. Anonymous users2024-02-01

    Hello, suppose the market price of a ** is 24 yuan, and the earnings per share in the past 12 months is 3 yuan, then the P/E ratio is 24 3=8. The ** is considered to have a P/E ratio of 8 times, that is, for every $8 paid, you can share a profit of $1; I hope it can help you, please adopt it if you are satisfied, thank you.

  7. Anonymous users2024-01-31

    Example of calculating the price-earnings ratio: a company with 100 million shares, if the expected profit this year is 200 million yuan, its earnings per share EPS = 200 million 100 million = 2 yuan. If the current stock price is $40, its P/E ratio is PE=40 2=20.

    Ask how earnings per share are calculated.

    Answer: Earnings per share refers to the earnings per share that should be calculated by dividing the current net profit belonging to ordinary shareholders by the weighted average number of outstanding common shares.

    Not the same. Question: Why are you talking so complicated, just say no, but you have to say it so complicated [incomprehensible].

    Ask a question, then you are really professional.

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