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Showing posts with label different PE ratios. Show all posts
Showing posts with label different PE ratios. Show all posts
Wednesday, 28 December 2011

Valuing Stocks - Relative Valuation

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There are two basic methods of valuing stocks: Relative valuation Absolute valuation or Intrinsic Valuation The most frequently used m...
Wednesday, 7 December 2011

It's actually growth that determines value. You can't encapsulate the inherent value of a business in a P/E ratio.

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Some of the market's biggest winners were trading at prices above 30 times earnings before they made their move. A stock with a P/E be...
Tuesday, 22 March 2011

Don't be a stockpicking monkey, mistaking skill for luck. Learn DCF and PER 101.

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Don't be a stockpicking monkey Greg Hoffman March 21, 2011 - 12:06PM Monkeys are great stockpickers. Had your common-or-garden varie...
Saturday, 6 November 2010

Evaluating a Stock

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HOW-TO GUIDE HOME INVESTING Evaluating a Stock Main points: The most common measure of a stock is the price/earnings, or P/E ratio, w...
Tuesday, 5 October 2010

Sharemarket basics: a numbers game

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Money Magazine, April 2007 Investing in shares can be something of a numbers game, especially when the financial press is peppered with me...
Sunday, 3 October 2010

Short cuts for finding value

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Companies and shares are worth the present value of the future cash they can generate for their owners.  This is a rather simple statement,...
Friday, 25 June 2010

Comparing P/E ratios to growth rates can be significantly more useful than simply comparing two companies' P/E ratios. Why?

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Let's compare Company A to its competitor in the same industry Company B to illustrate. Company A Price $10 Last year's EPS $1...

Comparing the P/E to Growth Rates

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Answer: Company A's forward P/E is 7.5, while Company B's remains 7. Remember, you are more concerned with what Company A is goi...
Friday, 23 April 2010

How much should you pay for a business? Valuing a company (3)

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Multipliers Another simple approach is to use a multiplier to calculate a company's value. These multipliers will vary for different i...
Monday, 12 April 2010

PEG Ratio: Why It’s More Relevant than P/E for Stocks

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PEG Ratio: Why It’s More Relevant than P/E for Stocks by  DARWIN  on  APRIL 6, 2010 While many individual investors are familiar with the ...
Friday, 29 January 2010

Are You Paying Too Much For Stocks? Market Value is Not Equal to Actual Value

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Are You Paying Too Much For Stocks? Market Value Not Equal to Actual Value A small loan can help you if you are short of cash until your ...
Sunday, 24 January 2010

Market Multiple or "What the market is selling for".

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The P/E ratio is a complicated subject that merits further study, if you are serious about picking your own stocks.  Here are some pointer...

Reading the Stock Pages

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One way to tell who the investors are is by watching them read the paper.  Investors don't start with the comics, or sports, the way oth...
Saturday, 5 December 2009

Never Use P/E Ratios in Isolation

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Different Types of P/E Ratios It's important to understand that all P/E ratios are not created equally. Some are calculated using earn...

What's the difference between absolute P/E ratio and relative P/E ratio?

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What's the difference between absolute P/E ratio and relative P/E ratio? ------------------------------------------------------------...
Thursday, 12 November 2009

Normalizing Earnings for PE ratios

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Normalizing Earnings for PE ratios The dependence of PE ratios on current earnings makes them particularly vulnerable to the year-to-year ...

Comparing PE Ratios across firms in a sector

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Comparing PE Ratios across firms in a sector The most common approach to estimating the PE ratio for a firm is to choose a group of compar...
Tuesday, 10 November 2009

Price/earnings ratio

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5 Price/earnings ratio The price/earnings ratio (P/E ratio) is the value of a business divided by its profits after tax. Once you have d...

****How much is your business worth?

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How much is your business worth? If you are thinking of selling up, what could you get for your business? General Principals The larges...
Tuesday, 13 October 2009

Different PE ratios

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Price = estimated EPS x PE Estimated EPS is based on a number of assumptions about the behaviour of revenues and costs. The reliability of...