PRICE 2 EARNINGS

PRICE 2 EARNINGS




A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Company  PER  Country Industry
Concordia Financial8.90JapanFinancials
ENDESA Americas0.00ChileUtilities
Enagas14.80SpainUtilities
BidCorp Ltd0.00South AfricaIndustrials
El Puerto de Liverpool SAB28.40MexicoConsumer Services
3SBio (P Chip)29.10ChinaHealth Care
Coca-Cola European Partners14.90USAConsumer Goods
Banco Popular Esp32.20SpainFinancials
Vuela Compania De Av12.60MexicoConsumer Services
Alpek SAB19.60MexicoBasic Materials
Grupo Aeromexico21.80MexicoConsumer Services
Kingston Financial G31.40Hong-KongConsumer Services
Domino's Pizza Enter82.30AustraliaConsumer Services
Broadcom Limited29.30USATechnology
IT Holdings18.30JapanIndustrials
Askul31.70JapanIndustrials
Teleperformance19.50FranceIndustrials
Micro Focus Internat26.70UKTechnology
Sonda SA20.80ChileTechnology
Obic Business Consul26.80JapanTechnology

The price to earnings ratio (PER, P/E or PE) is a measure used in market analysis, and it is calculated by dividing the market capitalization of a company with their net income (earnings), or by dividing the price of a share by the earnings per share. These operations are performed generally with the data of the last financial year of a company, but some financial analysts use either quarterly data (PER sliding) or forecast data based on earning expectations (projected PER).

The PER is used to evaluate the value of a stock relative to the prices of securities of companies in the same industry and sector: the lower the PER, the cheaper the action. The PER may also reveal the speculation of investors, who expect a strong increase in future earnings: in this case, the higher the PER, the higher the expected increase in profits.

There are two methods to interpret P/E ratio:

  1. A PER of X indicates that a company has a capitalization equivalent to X times their earnings
  2. A PER of X indicates that if earnings remained constant, an investor would need X years to recover his investment based on present earnings.

Thus, PER can be interpreted as a sort of inverted yield, between "potential" income of the stock and its price.

In practice, this ratio varies between 5 and 40, sometimes with extreme (although lower or higher) that depend on the type of business (growth company, defensive, cyclical crisis, declining ...) , the economic cycle, the listing market, etc. In short, many interpretations are possible and there is no ideal and theoretical value. Therefore, the list below is indicative and should not be used as a fix guide:

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