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
DONG Energy-11.30DenmarkUtilities
Covestro AG24.70GermanyBasic Materials
CommerceHub Series0.00USATechnology
Amundi11.90FranceFinancials
S&P Global26.50USAFinancials
Moneta Money Bank7.90Czeck RepublicFinancials
LIBERTY SIRIUSXM SER30.40USAConsumer Services
LIBERTY BRAVES SERIE-27.60USAConsumer Services
CCR SA20.00BrazilIndustrials
Megacable Holdings S19.90MexicoConsumer Services
Ingevity19.50USABasic Materials
Fibria Celulose S.A.26.50BrazilBasic Materials
Enersis Americas SA7.60ChileUtilities
Concordia Financial7.50JapanFinancials
ENDESA Americas13.60ChileUtilities
Enagas14.90SpainUtilities
BidCorp Ltd0.00South AfricaIndustrials
El Puerto de Liverpool SAP26.00MexicoConsumer Services
3SBio (P Chip)30.30ChinaHealth Care
Coca-Cola European Partners29.90USAConsumer Goods

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