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
Container Corporatio28.70IndiaIndustrials
Copart Inc25.80USAConsumer Services
CJ ENM23.60KoreaConsumer Services
Cineworld Group35.90UKConsumer Services
Chailease Holding11.80TaiwanFinancials
British Amer Tobacco2.80UKConsumer Goods
Agility Public Wareh17.50KuwaitIndustrials
National Bank of Kuwait16.20KuwaitFinancials
Kuwait Finance House19.50KuwaitFinancials
Boubyan Bank KSC29.50KuwaitFinancials
Benefit One56.00JapanIndustrials
BeiGene ADS-82.40ChinaHealth Care
Bandhan Bank34.60IndiaFinancials
Aveva Group44.90UKTechnology
ASE Industrial Holding0.00TaiwanTechnology
Deutsche Wohnen AG8.40GermanyFinancials
Ambu AS92.70DenmarkHealth Care
Boubyan Petrochemical96.20KuwaitBasic Materials
Abu Qir Fertilizers14.10EgyptBasic Materials
Abiomed Inc0.00USAHealth Care

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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