Search results for “Price-to-Earnings Ratio”

Fundamental Analysis & Valuation

The price of one share divided by the earnings attributable to it, showing how many rupees are paid per rupee of annual profit.

P/E = Market Price per Share / Earnings per Share ratio (x, times)

Fundamental Analysis & Valuation

Earnings per share expressed as a percentage of the share price — the inverse of the price-to-earnings ratio.

Earnings Yield = Earnings per Share / Market Price per Share x 100 = 1 / P/E x 100 %

Fundamental Analysis & Valuation

The price-to-earnings ratio computed using forecast earnings for a future period rather than reported ones.

Forward P/E = Current Market Price / Estimated Earnings per Share for the Forecast Period ratio (x, times)

Fundamental Analysis & Valuation

The price-to-earnings ratio divided by the expected annual earnings growth rate, used to judge whether growth justifies the multiple.

PEG = Price-to-Earnings Ratio / Expected Annual Earnings Growth Rate (in percent) ratio (x, times)

Fundamental Analysis & Valuation

The price-to-earnings ratio computed using earnings actually reported over the last twelve months.

Trailing P/E = Current Market Price / Earnings per Share over the Trailing Twelve Months ratio (x, times)

Economy, Macro & Market Cycles

The long swing in commodity prices driven by the lag between demand changes and the supply response.

Test: high prices induce investment in new supply, which arrives years later and depresses prices, discouraging investment in turn qualitative

Market Basics & Instruments

A share whose earnings rise and fall with the economic cycle, typically in sectors such as metals, cement, autos and construction.

Test: earnings correlate strongly with GDP growth, commodity prices or credit conditions, with wide peak-to-trough swings qualitative

Results for “Price-to-Earnings Ratio”