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Results for “Price-to-Earnings Ratio”

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Price-to-Earnings Ratio Fundamental Analysis & Valuation ratio (x, times) 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 Earnings Yield 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 Forward Price-to-Earnings Fundamental Analysis & Valuation ratio (x, times) 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 PEG Ratio Fundamental Analysis & Valuation ratio (x, times) 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) Trailing Price-to-Earnings Fundamental Analysis & Valuation ratio (x, times) 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 Commodity Cycle Economy, Macro & Market Cycles qualitative 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 Cyclical Stock Market Basics & Instruments qualitative 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