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
Keurig Dr Pepper5.10USAConsumer Goods
Veoneer-24.20USAConsumer Goods
Pindu ADS (N Shares)0.00ChinaConsumer Services
Hyosung TNC0.00KoreaConsumer Goods
Hyosung Heavy Industries0.00KoreaIndustrials
Hyosung Chemical0.00KoreaBasic Materials
Hyosung Advanced Materials0.00KoreaConsumer Goods
Xiaomi (P Chip)-7.40ChinaTechnology
Landing International18.40ChinaFinancials
Epiroc A26.20SwedenIndustrials
Old Mutual Ltd7.50South AfricaFinancials
Wyndham Hotels & Resorts21.50USAConsumer Services
Grindrod Shipping Holdings-2.60South AfricaIndustrials
GMexico Transportes S.A21.00MexicoIndustrials
HDC Hyundai Development0.00KoreaIndustrials
Enerjisa Enerji5.10TurkeyUtilities
SBI Life Insurance70.40IndiaFinancials
HDFC Standard Life Insurance82.30IndiaFinancials
Future Retail69.70IndiaConsumer Services
Country Garden Services Hldgs72.10ChinaFinancials

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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