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Showing posts with label P/E. Show all posts
Showing posts with label P/E. Show all posts
Saturday, 13 December 2025

Price-to-Earnings (P/E) ratio principle

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The principle regarding the Price-to-Earnings (P/E) ratio is one of the most important concepts for a fundamental investor to understand pro...
Saturday, 14 December 2024

Earnings are not equivalent to cash flows

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These metrics rely  on reported profits or earnings rather than cash flows: P/E P/EBITDA P/S P/BV EV/EBITDA Profits may not reflect the actu...
Friday, 6 December 2024

Relative and Absolute Price Earnings Ratio

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Relative PE ratio Relative PE ratio moves up because people expect either the industry or the company's prospects to be better relativ...
Saturday, 25 August 2018

Should You Sell Company ABC At This PE Ratio of 36.4x?

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Should You Sell Company ABC At This PE Ratio? ABC is trading with a trailing P/E of 36.4x, which is higher than the industry average of ...
Tuesday, 12 December 2017

Price/Earning Ratio or P/E Ratio

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This is a company's stock price divided by its earnings per share over the previous twelve months. Because earnings can be manipulate...
Sunday, 30 April 2017

Multiples based on Comparables

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This method compares relative values estimated using multiples to determine whether an asset is  undervalued,  overvalued or  fairly...

Multiples based on Fundamentals - the Justified P/E ratio

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A price multiple may be related to fundamentals through a dividend discount model such as the Gordon growth model. The expressions develo...

Price Multiples - Relative Valuation

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Price multiples are ratios that compare the price of a stock to some sort of value. Price multiples allow an analyst to evaluate the re...
Tuesday, 11 April 2017

Price/earnings ratio

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For example: Profit after tax  $5 million Number of issued shares 10 million Earnings per share 50 sen Current share price $7.50 Pric...
Tuesday, 19 July 2016

The Five Rules for Successful Stock Investing 10

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Valuation – The Basics Even the most wonderful business is a poor investment if purchased for too high a price. To invest successfully m...
Thursday, 26 November 2015

Valuation methods

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Even the best investing strategies won't help you if you don't understand the value of the investments you are making. Without ass...
Wednesday, 18 November 2015

What does P/E mean? Future P/E is the Key

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P/E ratio or price earnings ratio of a stock refers to the market multiplier. P/E ratio is calculated by dividing the current market price...
Sunday, 7 June 2015

Which company is cheaper? (Understanding P/E, Earnings yield and EBIT/EV.)

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Consider two companies, Company A and Company B. They are actually the same company (i.e. the same sales, the same operating earnings, the...
Wednesday, 3 July 2013

Alternative to Discounted Cash Flow Method

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What do you use if you don't want to or can't use the discounted cash flow (DCF) method of valuing a stock?   There are other met...
Monday, 8 April 2013

The various interpretations for the P/E value

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There are various interpretations for the P/E value and this is just  one  of them: *N/A: A company with no earnings has an undefined P/E r...
Monday, 6 February 2012

Knowing and Setting the Upper Limits of Share Price

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The P/E also can be used to establish a cap on intrinsic value. While asset values set the lowest level for estimating intrinsic val...
Saturday, 14 January 2012

P/E Ratio

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What is P/E? P/E is the price/earnings ratio. In essence, the P/E compares the share price of the company to its earnings per share. How ...
Tuesday, 13 December 2011

QUICKIES: Seven investment myths you should not fall for

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Text: Prerna Katiyar | ET Bureau Pick this stock, it's trading at 52-week low.' 'That stock is a multi-bagger, trading at ...
Tuesday, 20 September 2011

A beginner's guide to P/E ratio

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