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So, if a company has a share price of $20 and an EPS of $0.50, that would give it a P/E ratio of 40. Looking at it simply, the number in a P/E ratio tells you how much you have to pay to get one ...
Robert Shiller's plot of the S&P composite real price–earnings ratio and interest rates (1871–2012), from Irrational Exuberance, 2d ed. [1] In the preface to this edition, Shiller warns that "the stock market has not come down to historical levels: the price–earnings ratio as I define it in this book is still, at this writing [2005], in the mid-20s, far higher than the historical average
The price earnings ratio (P/E) of each identified peer company can be calculated as long as they are profitable. The P/E is calculated as: P/E = Current stock price / (Net profit / Weighted average number of shares) Particular attention is paid to companies with P/E ratios substantially higher or lower than the peer group.
Math: the four-letter word you can say on TV yet so reviled that people go great lengths to avoid it, even when they know doing so puts their financial well-being in peril. Wait! Don't click away.
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, [1] Shiller P/E, or P/E 10 ratio, [2] is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings ( moving average ), adjusted for inflation. [ 3 ]
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In fact, if you're used to staring at REIT P/E ratios of 30-50, you'd probably think REITs are downright cheap when you look at P/FFO. A REIT's P/FFO is a really good way to work out a theoretical ...
The 'PEG ratio' (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share , and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus, using just the P/E ratio would make high-growth ...