For example, if the P/E ratio of a company in the Maritime industry is 10 while the average P/E ratio of the entire Maritime industry is 7, the company may be overvalued and we will want to look at the reasons contributing to the higher valuation. A high P/E ratio is attractive to...
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...
The price-to-earnings ratio can be used to compare a company to its competitors in the same industry. Comparing different companies’ P/E ratios can determine which is a better investment. However, the P/E ratio can also be compared to the company’s past performance to get a better idea...
What is a good P/E Ratio to buy? Risks of using P/E Ratio Evaluation Think of the price-to-earnings (P/E) ratio as a price tag on a company. Investors use it to decide if they're paying too much, just the right amount, or getting a bargain on its shares. ...
What does a negative P/E ratio mean? The price-to-earnings (P/E) ratio is the most commonly used ratio to determine the value of a stock relative to its earnings. In very general terms, a highP/E ratioindicates a stock is expensive, while a low P/E ratio suggests that it is inex...
A book-to-market ratio is a mathematical comparison of a company's actual value and its market value. Companies and investors use...
What is a company's Price to Earnings (P/E) Ratio? How do you calculate a P/E ratio? How do you value a company based on its P/E ratio?
Profit is an important part of a company’s financial health, but not the whole picture. If you want to go to the beach, don’t just check to see if it’s sunny out. Check the temperature too — of the water and the air. Similarly, if you want to know how a company’s doing,...
Sector price-to-earnings (P/E) ratio: Comparing the stock’s P/E ratio to those of other similar-sized companies in its sector—in addition to the sector’s average P/E ratio—can help investors determine whether the stock is trading at a premium or discount valuation compared to its pee...
company with a higher forward P/E ratio than the industry or market average indicates an expectation the company is likely to experience a significant amount of growth. If a company's stock fails to meet the high ratio value with increased per-share earnings, the price of the stock will ...