Questions tagged [price-earnings-ratio]
The price-earnings-ratio tag has no usage guidance.
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Calculate PE ratio of equally weighted index
I need to calculate Price-to-Earnings Ratio (PE Ratio) of an Equal-weighted index.
Sum of market caps
P/E for Market-cap Weighted index = -------------------
...
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Should stock price and P/E ratio increase when dividends increase?
In private conversation, someone told me that an increase in dividends should always increase stock price and P/E ratio, if all other factors remain unchanged. The "proof" involves the ...
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Valuation Multiples for Growth Stocks
I recently started hearing about Valuation Multiples after the recent market drop. Many of the stocks which went higher during the pandemic have come down to 2019 level. ZM is an example. In 2020, ZM ...
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Is it possible to identify the number of years to double the return on investment considering earnings growth
PE ratio indicates in how many years one can double their return. But it doesn't account for earnings growth.
Say a company's PE is 20 it's not necessary that earnings have to be stagnant for next 20 ...
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Charles Schwab shows Ebay's PE as 21. Is that a mistake or a different way of calculating?
Using Charles Schwab data the TTM earnings for Ebay is 2.5B + 2.668B + 2.368B + 2.868B = 10.404B
Shares outstanding is 626M
So 10.404 B / 626 M = 15.9 EPS.
So PE is 58 / 15 = 3.86. How is Charles ...
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Is stop buying a stock/fund because its PE ratio is very high considered "to time the market"?
The advise "Don't time the market" alludes to not operate on it merely because you think something is going to go up or down in short-term.
Let's suppose a small investor has a savings plan ...
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Calculating a company's PE value
My friend has a startup comapny. The company licenses a software for public participation (example: a municipality wants to conduct a survey/discussion between it's citizens regarding changes they ...
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While calculating PE ratio of a mutual fund what do I do with negative earnings of a particular stock?
I am reading one of Peter Lynch's book and he recommends some decisions based on the PE of a mutual fund. While trying to calculate the PE of the mutual fund, I came across a member stock with the ...
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Difference between Stockholders' Equity and Stockholders' Equity-Parent?
What's the difference between "Stockholders' Equity" and "Stockholders' Equity - Parent"? Which should I use in calculating the return on equity?
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Diluted EPS Calculation
I'm new to Capital Markets and Balance Sheet reading. I'm trying to calculate DEPS (Diluted EPS) using data available in https://www.screener.in
Diluted EPS = (Net Income−Preferred Dividends) / Total ...
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How to find competitors of a company with other proxies besides P/E ratio?
How to find competitors of a public United States company with other proxies besides P/E ratio?
Someone told me look at companies with similar P/E ratios, but sometimes the P/E is N/A and it doesn't ...
user97739
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Stock value according to dividend yield and PE, from an income investor's and a capital gains investor's perspective
I have a question about determining the cheapness of a stock when dividend yield and PE are telling different stories. Also, from a perspective of an income investor and a capital gains focused ...
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Metal companies trading below book value
Is there a reason why metal companies, like Tata Steel and SAIL trade at such low prices compared to their book value? Even the industry P/B seems to be low. What am I missing?
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Am I looking at the right number for Earnings and EBITDA for Nokia?
I'm practicing how to read quarterly reports of publicly traded companies. I'm looking at Nokia's with this link here:
https://www.nokia.com/system/files/2019-10/nokia_results_2019_q3.pdf
Am I ...
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The rule of thumb that if the growth of a company is 20% per year, then the P/E should be 20, what is this rule based on?
I think it was a rule of thumb that came from T. Rowe Price: if year-after-year growth of earning per share (EPS) is 10%, then its P/E ratio could be 10, as expected by people and seen as reasonable.
...
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What is the correlation (if any) between earnings report and stock price movement?
This might sound like a dumb question (I'm relatively new to the stock market). I know this doesn't happen, but why doesn't the stock price directly move in accordance to the earnings reported vs what ...
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For a very stable listed company, does the P/E ratio represent how many years the buyer can stand to earn his/her investment back?
I'm looking into a public company that is a very stable one (revenue is about the same every year), for example, Citibank (NYSE: C). Its P/E ratio is about 9.0. That means if I invest $100 into the ...
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Discrepancy in P/E ratio of stocks in Robinhood app?
The current price of the Amazon stock is $1673. The latest EPS ratio was $6.04 for Q4 2018. So, the P/E ratio should be $1673/$6.04 ~ 279. But the robinhood app says the P/E ratio of Amazon is 83. ...
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P/E & P/B of stocks purchased by Warren Buffett
I am looking for data about Warren Buffett's famous purchases.
For e.g. when Warren Buffett purchased stock of Coke, American Express, Moody's & other of his long term purchases what was the P/...
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Understanding corporate earnings manipulation
While reading earnings manipulation on investopedia, I came across following sentences:
Another form of manipulation is to change company policy so more costs are capitalized rather than expensed ...
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Studying for basic finance exam and stuck finding the stock value
I'm not sure if this is the right place to ask a school related question but any help would be much appreciated! Note that this is not an actual graded assignment but I am studying for an exam with ...
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Why do PEG ratio values calculated on different financial web sites differ from each other?
For example when I calculate the PEG of Microsoft (for the fiscal year 2017):
For P/E ratio:
P/E Ratio = Price per Share (last price before 10-k filing) / EPS (diluted)
= 68.93 / 2.71
...
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Trailing or forward earnings to calculate SP500?
If I have current earnings for the SP500 of $160, should trailing or forward P/E be used to calculate the SP500's price?
What is the difference in using one over the other?
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How to calculate stock price with EPS and outstanding shares
How do you calculate stock price with only EPS and outstanding shares, and market cap available?
EDIT
sorry forgot to mention, i was trying to get future stock price based on financial guidance of ...
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Is the PE ratio a good indicator of when to move money in and out of the stock market?
I've read much about investing, how nothing is predictable and how even the best financial manager probably won't do much better than an index fund. I remember reading this article that described a ...
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P/E (or similar) for index funds?
I'm looking to compare index funds, such as VTIVX vs VGTSX vs VFIAX, etc.
I've found these posts that address P/E ratios for the S&P 500:
API for retrieving index P/E ratio?
Where can I find S&...
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Why was S&P 500 PE Ratio so high on May 2009
When I looked at S&P 500 PE Ratio chart today, I am surprised that the PE ratio was so high on May 2009, which was 123.73, and it decreased dramatically afterwards. I have no idea why this ...
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Does the P/E ratio of REITs matter for dividend investing?
When buying REITs, one essentially looks for the dividend yield (last dividend vs. current share price).
If it's an established fund, does it really matter what's the P/E ratio if one capitalizes on ...
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Price Earnings Ratio
OK so struggling to get my head around why a high price earnings ratio is preferable to a low P.E. . If there is a big gap between a company's share price and its earnings per share surely that would ...
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The Intelligent Investor: Northern Pacific Railway example
I am reading the revised edition of Ben Graham's THE INTELLIGENT INVESTOR (First Collins Business Essentials Edition, 2006) with commentaries by Jason Zweig.
In chapter 7, "Portfolio Policy for the ...
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Is Peter Lynch talking about the Dividend Adjusted PEG Ratio in this quote?
In Peter Lynch's One Up on Wall Street, he gave a simple, straight-forward explanation as to his preferred metric for doing a quick and dirty valuation of a firm's investment prospect:
A slightly ...
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Is dividend included in EPS
I wanted to understand whether dividend is included in EPS.
For example. take PFE
http://finance.yahoo.com/q?s=PFE
its (anual) dividend today is 1.2, while its EPS is 1.11.
Does it means that PFE ...
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What should I look for when looking for stocks that are 'on-sale'?
Considering the stock market is down these days I want to invest money in mainly Large-Cap Stocks and hold them for the long-term. I was originally looking at P/E ratios being lower than average, but ...
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Where can I find historical P/E ratios for companies? [closed]
Since the market conditions are down, I am considering on investing a little money in stocks, and holding them long-term.
I would like to see which stocks are 'on sale' and am looking at the P/E ...
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What is it about company performance that causes the perceived value of its stock to rise? [duplicate]
Many stocks don't pay dividends, and it's not like a shareholder has any direct financial gain from increased company earnings. Plus, they can only benefit from earnings if the company goes bankrupt ...
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Calculate price to earning and price to sale value for given dataset
Consider this dataset - https://www.google.com/finance/historical?q=NYSE%3ABME&ei=DSIeVtGMAYrvuATEsZfACA
I want to calculate Price/Earning i.e. latest PRICE/(NETINC MRT/SHARESWADIL MRT) for 11 ...
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Can PE ratio of stocks be compared to other investments?
Stocks are often characterized by their P/E ratio. In principle, stock ownership represents part ownership of the company, but in practice shareholder are somewhat distanced from the earnings: The ...
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Does the P/E ratio not apply to bond ETFs?
I cannot seem to find them on any website, but I have seen their existence for stock ETFs.
If the answer to the question entitled is 'no', then why not? I exemplify with 2 ETFs:
Blackrock (Canada)'s ...
user10763
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Where or how can I model historical market purchases [closed]
I've been doing some research into the S&P PE Ratios and the correlation to the performance of the stock market. I'm looking for a place that I can test some of my theories out. For instance, If I ...
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Total market cap in country, and average p/e per country and continent(europe)
sorry I am not sure to post this question in quant stackexchange or in here. I have posted it previously in the below link https://quant.stackexchange.com/questions/18633/total-market-cap-in-country-...
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What do Earnings Per Share tell potential shareholders?
I am new to shares and the stock market, and I was just wondering, when considering which companies to buy into, why should I consider the EPS as a factor of whether or not I should buy in?
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How to calculate P/E ratio for S&P500 sectors
I want to calculate the P/E ratio for the different sectors in the S&P500. To do this I'm dividing the sector's index price (found on their website) by the sector's earnings per share. When I do ...
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How do I find out the Earnings Per Share of a Coca Cola Co Share?
I am trying to figure out the P/E ratio, mainly. But first I need to figure out the EPS (earnings per share). I have read that to calculate price/earnings ratios you must find its earnings of last ...
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How can I understand why investors think a particular company should have a high PE ratio?
Say a particular stock has a PE ratio of 30. Given that a standard valuation is closer to 10 or 15 times earnings, a PE ratio of 30 implies that investors foresee a lot of growth.
How can I ...
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Why do P/E ratios for a particular industry tend to cluster around particular values?
The answer I've read on this topic is that a new industry with a lot of growth potential (software, biotech, etc.) tends to have the stock priced at a premium in order to reflect the growth 'potential'...
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How do you calculate the P/E ratio by industry?
I would like to know how to calculate the P/E ratio by industry. On this website, it displays the P/E ratio for the current stock, the industry and the sector:
FINANCIALS
DTV.O ...
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Investing: P/E Ratio basic question
I'm just starting out in investing so I apologize if this comes across as annoyingly simple question. I've just read about PE Ratio and I came across this video from investopedia P/E Ratio Video which ...
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Why do PE ratios for small cap stocks tend to be greater than those for large cap stocks?
As a general rule, why is the PE ratio of small cap stocks greater than the PE ratio of large cap stocks? Is it just a coincidence? Or is there a reason?
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What's the connection between P/E ratio and growth?
Is there an exact formula for that if we can predict the growth accurately?
For example:
Using discounted cash flow analysis, the impact of earnings growth and
inflation can be evaluated. Using ...
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Why does the biotechnology industry have such a high PE ratio?
I'm looking at this link, which lists P/E ratios by industry. I see that biotechnology has a P/E ratio of 145, which is very high compared to other industries. What is so special about this industry ...
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