The
earnings ratio is a financial term that compares a company's earnings to its stock price. It represents how much investors are willing to pay for each dollar of earnings that the company generates. A higher
earnings ratio suggests that investors have confidence in the company's profitability and are willing to pay more for its stock. Conversely, a lower
earnings ratio indicates that investors might not have as much faith in the company's financial performance.
Full definition
This is a solid and sustainable growth rate for the company — it just does not justify a price - to -
earnings ratio of over 30.
Notice that the current
price earnings ratio on this quality company is as high as it has been since 2002.
There is one crack in the windshield, and it's the big reason why price - to -
earnings ratios for many of the companies across the sector are still low.
In contrast, the average Price /
Peak Earnings Ratio at the beginning of the three strongest second - year periods was 8.9.
Notice that the current price
earnings ratio on this quality company is as low as it has been since 1998.
Next, we look for businesses that have a price - to -
earnings ratio below 15 and a price - to - book below 1.5.
... the most obvious bargain is the stock market, which is close to the lowest price - to -
earnings ratio in almost 20 years.
We prefer profitable companies and award higher grades to firms with positive price - to -
earnings ratios based on their earnings over the past 12 months.
Well, a couple of years back there were some investors who actually took the high price to
earnings ratio as a clear signal to invest in bonds.
The next set of graphs shows the Price - to - Peak -
Earnings Ratio at the start of each bear market.
In contrast, market returns from price / peak -
earnings ratios over 18 - 19 have regularly been given back, often painfully.
A secular (long - lasting) bull market is one with an increasing price - to -
earnings ratio P / E.
For example, if you want to find the companies with Price to
earnings ratio less than 15, you can write the following query in the query builder.
The company traded for an average annual price - to -
earnings ratio above 20 from 1998 through 2008.
The Price to
Earnings ratio gives us the ability to judge whether a stock is reasonably priced or not.
Both trade at low price - to -
earnings ratios relative to the overall market, and both have decent growth prospects, and both have high dividend yields.
In other words, the price
earnings ratio shows what the market is willing to pay for a stock based on its current earnings.
Buying stocks of a company with low price
earnings ratio means that you can easily recoup your investment within a short period.
The fundamentals for the bank stocks are remarkably similar to where they were last year, with dividend yields and price - to -
earnings ratios virtually unchanged.
The price /
earnings ratio also known as the P / E ratio is the most common way to find out how expensive a stock is.
This issue's focus is on stocks with below - average price -
earnings ratios whose recent quarterly earnings reports surpassed the consensus forecast.
Both offer dividend yields approaching 4 % and trade at price - to -
earnings ratios of just under 13, which is quite low compared to most Canadian stocks.
Once again, high valuations at the date of the announcement were part of the problem, as the price - to -
peak earnings ratio was 22 at the time.
The great news if you are inexperienced with investing is that most financial portals and stock market research sites will automatically figure the price - to -
earnings ratio for you.
Notice that the current price
earnings ratio on this quality company is as normal as it has been since 1998.
Problem is, based on current prices, that puts its far - forward price - to -
earnings ratio at a still sizable 40.
A stock certificate trading at high valuation based on traditional measures such as
price earnings ratio.
Because transfer and
earnings ratios vary, always consider the value of your options before transferring points.
Even if the price - to -
earnings ratio doesn't shift, the Index should still see a healthy return for 2012 on earnings growth alone.
It's nonsensical to derive a price /
earnings ratio by dividing the known current price by unknown future earnings.
When I made the investment in May 2016, the stock price was significantly below book value and price
earnings ratio looked attractive to me.
A stock's PEG ratio — its price - to -
earnings ratio divided by the growth rate of its earnings — often is considered a more complete assessment of a company's current valuation than a P / E ratio because it takes earnings growth into account.
After outstanding earnings in 2011, price /
earnings ratios now stand around 16 or the long - term historical average:
Higgins adds that valuations were much more frothy: «Back [in the 90s], the price / 12m trailing
operating earnings ratio of the S&P 500 climbed to around 30 at its peak, which was roughly double its level in 1994.
«The other is the price - to - rent ratio, which is analogous to the price - to -
earnings ratio used for equities, with rents going to landlords (or saved by homeowners) equivalent to corporate profits.