Timeline for How to calculate/reconcile conflicting P/E ratios?
Current License: CC BY-SA 3.0
7 events
| when toggle format | what | by | license | comment | |
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| Apr 29, 2012 at 23:12 | history | tweeted | twitter.com/#!/StackFinance/status/196738876189057024 | ||
| Apr 27, 2012 at 1:48 | comment | added | JTP - Apologise to Monica♦ | I think that the idea that a P/E of say 200 has any meaning when it's the result of .02 earnings per share is silly. One would need to look more at the full earnings report to understand what the potential is years out. Yes, low earnings per share create crazy P/Es, I'm not an analyst, but there are other metrics to look at. | |
| Apr 26, 2012 at 20:37 | comment | added | xyz | @JoeTaxpayer This sounds interesting, can you elaborate? Is it because you feel the earnings numbers are too low to make the ratio (which tends to infinity as earnings approach 0) meaningless? Is there an alternative metric that's similar in spirit to P/E but more robust for this case? | |
| Apr 26, 2012 at 20:25 | vote | accept | xyz | ||
| Apr 26, 2012 at 20:26 | |||||
| Apr 26, 2012 at 18:49 | comment | added | JTP - Apologise to Monica♦ | There's a thing about companies with 100+ P/Es that makes the actual number meaningless. The difference between 100 and 1000 is far less than say 10 to 20. | |
| Apr 26, 2012 at 10:38 | answer | added | mhoran_psprep | timeline score: 1 | |
| Apr 26, 2012 at 4:49 | history | asked | xyz | CC BY-SA 3.0 |