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
Ferguson14.30UKIndustrials
Knorr-Bremse23.30GermanyIndustrials
Helvetia Holding AG14.40SwitzerlandFinancials
SHOPIFY INC0.00CanadaIndustrials
Qube Holdings24.10AustraliaIndustrials
Veeva Systems97.90USATechnology
LHarris Tech56.40USATechnology
DuPont de Nemours9.40USABasic Materials
DexCom0.00USAHealth Care
Atmos Energy28.70USAUtilities
Leroy Seafood Group9.60NorwayConsumer Goods
Croda International24.50UKBasic Materials
Hera9.90ItalyUtilities
Alcon AG36.60SwitzerlandHealth Care
CGI20.50CanadaTechnology
SPOTIFY TECHNOLOGY SA0.00USAConsumer Services
Notre Dame Intermedica55.70BrazilHealth Care
Adyen0.00NetherlandsIndustrials
HDFC Asset Management48.90IndiaFinancials
Hapvida Participacoes e Invest35.40BrazilHealth Care

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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