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
Galapagos Genomics0.00NetherlandsHealth Care
Wisetech Global0.00AustraliaTechnology
TransUnion30.30USAIndustrials
Kontoor Brands6.10USAConsumer Goods
CVC Brasil Operadora20.30BrazilConsumer Services
Corteva-4.80USAConsumer Goods
Castellum7.20SwedenFinancials
InterContinental Hotels32.70UKConsumer Services
Fortinet36.70USATechnology
VEON Ltd-28.30NetherlandsTelecommunications
PLAZA SA27.50ChileFinancials
The Drilling Company3.10DenmarkOil and Gas
TC Energy17.60CanadaOil and Gas
Washington H. Soul Pattinson20.20AustraliaBasic Materials
WP Carey Inc35.90USAFinancials
Live Nation Entertainment83.10USAConsumer Services
Elanco Animal Health43.30USAHealth Care
Dow Inc7.10USABasic Materials
Capri Holdings Ltd9.20USAConsumer Goods
Burlington Stores27.50USAConsumer Services

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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