# data[].attributes.headline
P/E Ratio by George Benny & Shobin Joseph

# data[].attributes.subject
P/E Ratio by George Benny & Shobin Joseph

# data[].attributes.body
This will be a platform which many of you can understand about P/E Ratio. Through this, you will get answers for What is P/E Ratio?
How can we calculate P/E Ratio?

# data[].attributes.body
The price-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
The price-earnings ratio is also sometimes known as the price multiple or the earnings multiple.The price-earnings ratio (P/E Ratio) also called as PER.
Here in this video explains what is P/E Ratio and how it can be used and what it tells investors about a particular stock.

# data[].attributes.attachment_link.description
The price to earnings ratio is one of the most important ratios in investing. Find out how it is calculated, how it can be used and what it tells investors about a particular stock.

# data[].attributes.body
This picture states that the P/E ratio of intel is 8.79. It means as an investor, the price for you to purchase that company’s stock is 8.79 times their annual profit.

# data[].attributes.body
The Price-Earnings Ratio (P/E ratio) is a valuation of a company's current share price compared to its per-share earnings.
It’s calculated as:
Current Value per Share / Earnings per Share (EPS).
A high P/E ratio points out that investors are expecting higher earnings growth in the future by comparing other companies with a lower P/E.
For example:
If "XYZ" is trading at $108.73 per share, and its trailing twelve months' EPS is $6.45, calculate the P/E ratio as:

$108.73 / $6.45 = 16.85

Now we can compare XYZ’s P/E Ratio to other companies in the industry.

If "ABC’s" P/E ratio is 18.31, "FGH’s" is 12.47, and "IMNO's"is 14.39, then the ratio suggests that investors have the highest expectations for earnings growth from ABC, and the lowest from FGH.

# data[].attributes.attachment_link.readable_text
The Price-Earnings Ratio (P/E ratio) is a valuation of a company's current share price compared to its per-share earnings. It's calculated as: Current Value per Share / Earnings per Share (EPS).

In general, a high P/E ratio suggests investors are expecting higher earnings growth in the future, compared to companies with a lower P/E.

The P/E ratio doesn't tell us the whole story by itself, so it's more useful to compare the P/E ratios of one company to other companies in the same industry, the market in general, or against the company's own historical P/E.

If Apple is trading at $108.73 per share, and its trailing twelve months' EPS is $6.45, calculate the P/E ratio as:

$108.73 / $6.45 = 16.85

Now compare Apple's P/E Ratio to other companies in the industry.

If Microsoft's P/E ratio is 18.31, International Business Machines (IBM)'s is 12.47, and Hewlett-Packard Company's is 14.39, then the ratio suggests that investors have the highest expectations for earnings growth from Microsoft, and the lowest from IBM.

# data[].attributes.attachment_link.title
How Do I Calculate the Price-Earnings Ratio?

# data[].attributes.attachment_link.description
The Price-Earnings Ratio (P/E ratio) is a valuation of a company's current share price compared to its per-share earnings. It's calculated as: Current Value per Share / Earnings per Share (EPS). In general, a high P/E ratio suggests investors are expecting higher earnings growth in the future, compared to companies with a lower P/E.

# data[].attributes.body
This website gave us an insight about the importance of P/E and also it gave us the major drawbacks of P/E. This website with the help of an example of Analysis of earnings and trend adjusted growth for 2008 of various countries gave us an idea about the growth of GDP in those countries and the current P/E ratio in these countries. It also made it clear which countries were cheap market, fair market, expensive market and basket case.

# data[].attributes.body
P/E Ratio calculated as:
Market Value per Share / Earnings per Share (EPS).
A high P/E ratio points out that investors are expecting higher earnings growth in the future by comparing other companies with a lower P/E.

# data[].attributes.body
This website gave us an idea about Stock Market and the Tips for Investing and Trading. Through the examples of Walmart, Netflix and Amazon gave us how to improve in Investing and Trading. This website also gave us an insight of what P/E means and the equation for calculating price to earning ratio. It also describes how investing more is beneficial for companies like Netflix and Amazon while the other companies did not benefit.

# data[].attributes.body
This website gives us an idea about the earnings of Apple and how it has been declining through the past 10 years. This website through the help of a chart between Apple vs S&P 500 explains the P/E ratio between the both and how Apple has been going down and how S&P has been staying stable all through the 10 years. In theory, fast growing earnings should cause higher multiples.

# data[].attributes.body
The price-to-earnings ratio is a stock’s current price divided by its earnings per share. A stock trading at $60 with an EPS of $3 would have a P/E ratio of 20. So would a stock trading at $20 with an EPS of $1. With both, investors pay $20 for each dollar of earnings.
If a stock’s P/E is 60, investors pay $60 for each dollar of earnings. This seems like a bad deal, but that’s not always so.
A company with a P/E of 60 can grow revenue and earnings faster than a company with a P/E of 20, thus commanding a higher price for higher future earnings. The P/E 60 stock’s price might be based on reliable earnings estimates, while the other company’s future earnings are questionable.

# data[].attributes.attachment_link.readable_text
Is a stock with a lower P/E always a better investment than a stock with a higher one? The short answer is no, but it depends on a few things.

The price-to-earnings ratio is a stock's current price divided by its earnings per share. A stock trading at $40 with an EPS of $2 would have a P/E ratio of 20. So would a stock trading at $20 with an EPS of $1. With both, investors pay $20 for each dollar of earnings.

If a stock's P/E is 40, investors pay $40 for each dollar of earnings. This seems like a bad deal, but that's not always so.

A company with a P/E of 40 can grow revenue and earnings faster than a company with a P/E of 20, thus commanding a higher price for higher future earnings. The P/E 40 stock's price might be based on reliable earnings estimates, while the other company's future earnings are questionable.

P/E ratios vary among industries. Companies in stable, mature industries that have moderate growth potential usually have lower P/E ratios than companies in new, quick-growing industries with robust future potential. Investors should only compare the P/E ratios of companies from the same industry with similar characteristics.

# data[].attributes.attachment_link.title
Is Stock With a Lower P/E Always A Better Choice?

# data[].attributes.attachment_link.description
Is a stock with a lower P/E always a better investment than a stock with a higher one? The short answer is no, but it depends on a few things. The price-to-earnings ratio is a stock's current price divided by its earnings per share.

# data[].attributes.body
The following table evaluates current country main indices P/E Ratios against GDP growth trends for 2008, as an indicator of prospects for future stock price appreciation in terms of relative valuations.