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Chances are you've heard the term price/earnings ratio (P/E ratio) used before. When it comes to valuing stocks, the price/earnings ratio is one of the oldest and most frequently used metrics. Although a simple indicator to calculate, the P/E is actually quite difficult to interpret.
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www.investopedia.com/university/peratio/
www.investopedia.com/university/peratio/
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P/E ratio - Wikipedia, the free encyclopedia
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The P/E ratio ( price-to-earnings ratio ) of a stock (also called its "P/E", "PER", "earnings multiple," or simply "multiple") is a measure of the price paid for a share relative to the annual net...
en.wikipedia.org/wiki/P/E_ratio
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price-earnings ratio - definition of price-earnings ratio - The most common measure of how expensive a stock is. The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over... ... The last year's price/earnings ratio (P/E ratio) would be actual, while current year and forward year...
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www.investorwords.com/5942/price_earnings_ratio.html
www.investorwords.com/5942/price_earnings_ratio.html
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This article from The Investment FAQ discusses analysis, specifically price-earnings (p/e) ratio. ... P/E is shorthand for the ratio of a company's share price to its per-share earnings. For example, a P/E ratio of 10 means that the company has $1 of annual, per-share earnings for every $10 in share price.
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invest-faq.com/articles/analy-pe-ratio.html
invest-faq.com/articles/analy-pe-ratio.html
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These days everyone seems to own a piece of the stock market, whether it's a 401(k) plan, an IRA mutual fund, or an online brokerage account. Terms like "P/E ratio," once the exclusive province of analysts and brokers, have become a part of regular water-cooler chatter.
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ask.yahoo.com/ask/20000308.html
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The P/E ratio is such a widely used measure that the Market is obviously inclined to agree with us. Earnings are indeed at the heart of the matter of valuing a company's stock. Other measures exist, of course. You might wish to value a real-estate company's stock not off its earnings but off the value of its land.
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www.fool.com/School/ThePERatio.htm
www.fool.com/School/ThePERatio.htm
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What is a good P/E ratio for a company to have? In general, a healthy company will have P/E ratio of 15 to 25. If it's above 25, or especially if it's over 40 or so,... ... In general, a healthy company will have P/E ratio of 15 to 25. If it's above 25, or especially if it's over 40 or so, it may be over-valued.
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www.answerbag.com/q_view/19
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The Price to Earnings Ratio is one of the most important numbers analysts look at to understand how the market values a stock. ... If there is one number that people look at than more any other it is the Price to Earnings Ratio (P/E). The P/E is one of those numbers that investors throw around with great authority as if it...
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stocks.about.com/od/evaluatingstocks/a/pe.htm
stocks.about.com/od/evaluatingstocks/a/pe.htm
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The Motley Fool - The proper way to P/E. ... The best way to think about the P/E ratio reinforces what Motley Fool co-founders Tom and David Gardner tell members of their Stock Advisor investing service: You must understand that you're buying a business when you buy a stock.
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www.fool.com/investing/general/2009/06/19/why-the-pe-ra...
www.fool.com/investing/general/2009/06/19/why-the-pe-ratio-is-dangerous.aspx
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