De-jargoned: Price-earnings multiple vs price-to-book value

11 years, 4 months ago

De-jargoned: Price-earnings multiple vs price-to-book value

Now that the quarterly earnings season is coming to a close, analysts are revising estimates for company earnings and coming out with new price targets. Future price estimates for stocks are based on valuation parameters such as price-earnings multiple or price-to-book value. P-E multiple Mathematically you can calculate this by dividing the current market price of a stock with the annual earnings per share. It indicates whether the price of a company’s stock is moving in line with it expected earnings growth. If a stock is trading at a low P-E multiple, the chances of price rising are high if growth is expected to go up and vice versa.

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Investment word of the day: Price-to-earnings ratio – How do you calculate P/E ratio and why is it important?

1 month, 1 week ago

Investment word of the day: Price-to-earnings ratio – How do you calculate P/E ratio and why is it important?

Future

Three factors to consider while looking at market valuations

1 year, 7 months ago

Three factors to consider while looking at market valuations

Growth

Decoded: A to Z of stock-market jargon

2 years, 8 months ago

Decoded: A to Z of stock-market jargon

India

De-jargoned | Price-earnings to growth ratio

9 years, 10 months ago

De-jargoned | Price-earnings to growth ratio

Growth

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Long-haul investors play a heroic supporting role in the stock market

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Q3 corporate data, US deal ignite hopes for Indian stock market

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Q3 corporate data, US deal ignite hopes for Indian stock market

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Stocks are on an astonishing run. Yet threats lurk

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US value stocks offer opportunities for bargain-hunters, BofA’s Subramanian says

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What are the different types of valuation ratios and how to use them efffectively?

1 year, 8 months ago

What are the different types of valuation ratios and how to use them efffectively?

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’Profit beat, in-line revenue growth hint at India’s earnings up-cycle trend’

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Growth vs Value investing: Which is the better approach to follow?

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Wall Street rises as earnings kick into high gear; Nasdaq up 111 pts

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3 years, 1 month ago

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What does an IPO priced at 202 times earnings say about our markets?

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