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
Bioverativ51.00USAHealth Care
BOC Aviation10.50Hong-KongIndustrials
Orient Securities (H1.00ChinaFinancials
Varex Imaging17.60USAHealth Care
Hilton Grand Vacations15.80USAConsumer Services
Park Hotels & Resort17.00USAFinancials
Conduent-4.60USAIndustrials
China International Capital11.10ChinaFinancials
Yum China Holdings19.40USAConsumer Services
Versum Materials15.00USABasic Materials
Samsung Biologics5.60KoreaHealth Care
Quality Care Property15.60USAFinancials
Nishi-Nippon Financi8.20JapanFinancials
Liberty Expedia Holding8.30USAConsumer Services
Lamb Weston Holdings19.80USAConsumer Goods
Kyushu Railway-1.30JapanIndustrials
Innogy SE10.50GermanyUtilities
Italgas0.00ItalyUtilities
Arconic-12.50USABasic Materials
AGNC Investment10.90USAFinancials

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:

All rights reserved

 information advertisement legal

Dividends Ranking | Firm Report | Price to BookValue | Price to Cash-Flow | Price to Earnings | Return on Equity

Part of Enciclopedia Financiera Group

Disclaimer: Information on this site is only for informational purposes. Always consult a professional advisor before investing.