Hello. Everyone would like to wish you all a happy new year and hope 2022 is better for you than it was in 2021. This week's subject is pe ratios otherwise known as price to earnings ratios. When ...
Take a Financial Advisor Quiz. Everyone wants to generate a healthy return on their investments. As the saying goes, you should “buy low and sell high.” But while you may think it’s a good idea to ...
If you are trading stocks, you need to have a strategy. You need to have a good way to differentiate a “buy” stock from a “sell” stock, so that you aren’t investing in stocks that decrease in value.
The P/E ratio and the PEG ratio are important valuation metrics when properly utilized. The P/E ratio is more relevant than the PEG ratio when earnings growth is below 15%. When earnings growth is ...
The price-to-earnings ratio is found by dividing share price by earnings per share. You should compare the P/E ratios of similar companies. Investors should be careful estimating earnings when using ...
Whether you’re a seasoned investor, or just starting out, one question that will probably be on your mind is whether an individual stock is cheap or expensive – a fact that can be revealed by its ...
Hardly ever has the stock market’s forward P/E ratio been higher than it is today. Based on estimated as-reported earnings per share for the next 12 months, for example, the S&P 500’s SPX current P/E ...
Way back in the 1980s, a video game called Pitfall! had us searching for buried treasure in a virtual jungle. Fast-forward a few decades and we're still chasing that buried treasure -- only now, the ...
There’s no single P/E ratio, causing no end of confusion. The reason there’s more than one ratio traces to ambiguity about the denominator. While the numerator is a fact of the matter, the denominator ...
Mark Hulbert says this value indicator might be misleading during a bear market. In these uncertain times, it’s easier to know what you should not be paying attention to. Today’s candidate for this ...
The price/earnings to growth (PEG) ratio is a metric used by investors when valuing stocks. The PEG ratio can give a more complete picture than the P/E ratio because it factors in future earnings ...
A 15 P/E ratio represents soundness as illustrated in my private company example above. However, it is the P/E ratio in relation to the company’s earnings growth rate that will produce future capital ...