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
Magnit PJSC13.80RussiaConsumer Services
Qatar Ntal Navigation & Transp13.30QatarIndustrials
AmRest Holdings N.V.43.70PolandConsumer Services
Volcan B C1-4.50PeruBasic Materials
IPG Photonics28.40USAIndustrials
Aalberts Industries18.60NetherlandsIndustrials
Banco del Bajio11.80MexicoFinancials
Nestle (Malaysia)50.10MalaysiaConsumer Goods
Press Metal Aluminium Hldgs31.00MalaysiaBasic Materials
Kaz Minerals12.00UKBasic Materials
SillaJen0.00KoreaHealth Care
Tokuyama Corp11.50JapanBasic Materials
Invitation Homes0.00USAFinancials
Tokai Carbon24.80JapanBasic Materials
Shima Seiki Manufacturing35.30JapanIndustrials
Penta Ocean Construction16.20JapanIndustrials
Noevir Holdings37.80JapanConsumer Goods
Open House13.80JapanFinancials
Morinaga Milk Industry25.00JapanConsumer Goods
Kyowa Exeo Corp19.60JapanIndustrials

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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