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
Notre Dame Intermedica45.10BrazilHealth Care
Adyen0.00NetherlandsIndustrials
HDFC Asset Management44.10IndiaFinancials
Hapvida Participacoes e Invest32.20BrazilHealth Care
Nordea Bank Abp9.70FinlandFinancials
Equitrans Midstream39.50USAOil and Gas
Ping An Healthcare-25.40ChinaConsumer Services
AXA Equitable Holdings9.10USAFinancials
Motus Holdings7.50South AfricaConsumer Services
Jiangxi Bank (H)12.30ChinaFinancials
QAMCO0.00QatarBasic Materials
Aleatica SAB de CV4.10MexicoIndustrials
Coles Group0.00AustraliaConsumer Services
Yageo19.40TaiwanIndustrials
Renishaw20.90UKIndustrials
Rollins Inc53.70USAConsumer Services
Quilter0.00UKFinancials
Worldpay71.60USAFinancials
Qingdao Port Interna9.00ChinaIndustrials
Phoenix Group Holding40.00UKFinancials

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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