PE ratio compares a company’s stock price with its earnings per share and helps determine if the stock is fairly priced. But what is a good PE ratio?
What is Considered a Good Forward P/E? There is no good forward P/E ratio as it varies by industry. However, a lower forward P/E ratio may indicate a stock is undervalued relative to its future earnings potential. The Bottom Line The forward P/E ratio can be a valuable tool for inve...
There is no such thing as a good or bad ratio. Ultimately, the ratio is relative: A ratio is either high or low only when compared to other companies in the same industry or to the company’s past performance. The ratio needs context to provide value. However, high or low earnings-per...
This measure is considered the more reliable of the two metrics since it is calculated based on actual performance rather than expected future performance. However, it could prove a limited or faulty estimate since a company's performance factors, costs, and profits change over time. But the tra...
A.The market expects earnings to fall in the future.B.The market feels the firm's earnings are very high risk and are willing to pay a premium for them.C.The market expects the earnings to rise in the future.D.The firm is not paying a dividend.相关...
When net earnings is negative, it’s called net loss, and EPS is called loss per share. A company with positive annual EPS is considered profitable, while a company with negative annual EPS is considered unprofitable. As an example, let’s look at one of the largest companies in the S&P...
(Capital productivity and labor productivity are frequentlyconsidered togetheras an indicator of a country’s overall standard of living.) Total factor productivity is the portion of growth in output not explained by growth in labor or capital. This type of productivity is sometimes called “...
So it is also known as stock price earnings ratio or market profit ratio. The formula is: Earnings per share = common stock market price / common stock earnings per share per year The molecules in the above formula refer to the current market price per share, and the denominator can be ...
Net income, net profit, net earnings: Three names for the same thing.Net incomeis the most comprehensive measure of profit out there. It incorporates all of the expenses considered in gross profit and profit before tax (thecost of goods sold, sales expenses, general and administrative costs, ...
百度试题 结果1 题目17. The ratio of my savings to the total amount of money that I had is 1: 4. What percentage of my money did I save?Ans: 25% 相关知识点: 试题来源: 解析 25 反馈 收藏