Price 2 Earnings
 

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
HDFC Standard Life Insurance81.30IndiaFinancials
Future Retail72.00IndiaConsumer Services
Country Garden Services Hldgs54.00ChinaFinancials
Apergy30.10USAOil and Gas
Perspecta10.80USATechnology
nVent Electric13.20USAIndustrials
Equinor SAS19.00NorwayOil and Gas
OneMarket-0.80AustraliaTechnology
Jefferies Financial Group11.60USAConsumer Goods
XPO Logistics39.70USAIndustrials
Gulf Energy Development38.30ThailandIndustrials
Teleflex Inc34.00USAHealth Care
Take-Two Interactive Software43.70USAConsumer Goods
Adani Green Energy0.00IndiaIndustrials
SVB Financial Group29.00USAFinancials
Tekfen Holding8.30TurkeyFinancials
Siam Cement8.80ThailandIndustrials
Old Dominion Freight Line34.10USAIndustrials
OC Oerlikon Corp AG24.60SwitzerlandIndustrials
GlobalWafers39.50TaiwanTechnology

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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