Price-Earnings Ratio
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A Price-Earnings Ratio is a ratio of a company stock price to the company's earnings per share.
- AKA: Price–Earnings Ratio, P/E Ratio, PER.
- Example(s):
- Counter-Example(s):
- See: Company Profit.
References
2017
- (Wikipedia, 2017) ⇒ https://en.wikipedia.org/wiki/Price–earnings_ratio Retrieved:2017-3-27.
- The price/earnings ratio (often shortened to the P/E ratio or the PER) is the ratio of a company's stock price to the company's earnings per share. The ratio is used in valuing companies.
2016
2015
- http://fortune.com/2015/05/04/by-the-numbers-apple-google-facebook-amazon/
- QUOTE: When compared with the other three horsemen of tech by such measures as cash flow, return on assets, brand value, earnings growth, dividends and cash holdings, Apple seems grossly undervalued. The contrast with Amazon is particularly striking. In fact, if you do the math -- multiplying Amazon's earnings per share by its price to earnings to get the price per share -- the math blows up. "Lacking any trailing earnings, Amazon has no P/E ratio," says Merckel. "The denominator is zero. Amazon's stock price is 100% based on the future hope that it will generate earnings to justify its current valuation." …
- QUOTE: When compared with the other three horsemen of tech by such measures as cash flow, return on assets, brand value, earnings growth, dividends and cash holdings, Apple seems grossly undervalued. The contrast with Amazon is particularly striking. In fact, if you do the math -- multiplying Amazon's earnings per share by its price to earnings to get the price per share -- the math blows up. "Lacking any trailing earnings, Amazon has no P/E ratio," says Merckel. "The denominator is zero. Amazon's stock price is 100% based on the future hope that it will generate earnings to justify its current valuation." …