PE( Price to Earning Ratio) refers to a study period (usually 12 months), the stock price and earnings per share ratio. Investors often use a measure of the proportion of the value of the investment value of the stock, or use the index in a different comparison between the company's stock. "P / E Ratio" said earnings; "Price per Share", said the price per share; "Earnings per Share", said earnings per share. The stock is the stock price and profit after tax per share the previous year ratio (P / E), the investment value of the stock index to measure a dynamic index.
Price-earnings ratio is commonly used to assess the reasonableness of the price level of one of the indicators. Earnings by the stock price divided by annual earnings per share (EPS) reached (the company's market value divided by the annual profit attributable to shareholders also yielded the same result). Calculation, the stock usually take the latest closing price, the EPS side, if published last year by EPS calculation, known as the historical price-earnings ratio (Historical P / E), if according to the market this year and next year EPS estimate of value, the known or estimated future earnings-earnings (prospective / forward / forecast P / E). Estimated price-earnings ratio used in calculating EPS estimates, generally use the average market forecast (consensus estimates), which track the performance of the company's agencies to collect a number of analysts predict the resulting estimated average or median.
Price-earnings ratio is a stock share price and earnings per share ratio. Turning to market-wide price-earnings ratio usually refers to the static price-earnings ratio, often used to compare different prices as the stock is overvalued or undervalued targets. Used to measure a company's stock price-earnings ratio when the texture is not always accurate. Generally believed that, if a company's stock price-earnings ratio is too high, then the price of a stock bubble, is overvalued. When a company has grown rapidly and is very optimistic about future earnings growth, the stock is just the current high price-earnings ratio may accurately assess the value of the company. Note that the use of price-earnings ratio to compare the investment value of the stock, these shares must belong to the same industry, because at this time closer to the company's earnings per share, compared with each other to be effective.
Price-earnings ratio is calculated:
Price-earnings ratio (static price-earnings ratio) = market price per common share ÷ earnings per common share on each type of molecule is the current share price, the denominator can be profitable last year, can also be used the next year or several years of earnings forecasts. The lower earnings, on behalf of investors to buy shares at lower prices in order to obtain a return. Earnings per share is calculated, is the company in the past 12 months divided by the total net profit after subtracting preferred stock dividends issued shares have been sold.
Price-earnings ratio is calculated:
Count out the use of different data-earnings ratio, has a different meaning. Current price-earnings ratio used in the past four quarters earnings per share calculation, can be used to forecast earnings over the past four quarters in terms of profits can also be based on actual two-quarter profit forecast for the next two quarters, and the sum of profit. Earnings are calculated on the related concepts, including common stock, preferred stock is not included. Can be derived from the earnings-earnings growth, earnings growth of this indicator added factors, mostly for high-growth industries and new enterprises.
