Can anyone explain a P/E ratio for me?
493099
P/E is shorthand for the ratio of a company's share price to its per-share earnings. For example, a P/E ratio of 10 means that the company has $1 of annual, per-share earnings for every $10 in share price. Earnings by definition are after all taxes etc.\n\nA company's P/E ratio is computed by dividing the current market price of one share of a company's stock by that company's per-share earnings. A company's per-share earnings are simply the company's after-tax profit divided by number of outstanding shares. For example, a company that earned $5M last year, with a million shares outstanding, had earnings per share of $5. If that company's stock currently sells for $50/share, it has a P/E of 10. Stated differently, at this price, investors are willing to pay $10 for every $1 of last year's earnings.\n\nP/Es are traditionally computed with trailing earnings (earnings from the past 12 months, called a trailing P/E) but are sometimes computed with leading earnings (earnings projected for the upcoming 12-month period, called a leading P/E). Some analysts will exclude one-time gains or losses from a quarterly earnings report when computing this figure, others will include it. Adding to the confusion is the possibility of a late earnings report from a company; computation of a trailing P/E based on incomplete data is rather tricky. (I'm being polite; it's misleading, but that doesn't stop the brokerage houses from reporting something.) Even worse, some methods use so-called negative earnings (i.e., losses) to compute a negative P/E, while other methods define the P/E of a loss-making company to be zero. The many ways to compute a P/E may lead to wide variation in the reporting of a figure such as the "P/E for the S&P whatever." Worst of all, it's usually next to impossible to discover the method used to generate a particular P/E figure, chart, or report.\n\nLike other indicators, P/E is best viewed over time, looking for a trend. A company with a steadily increasing P/E is being viewed by the investment community as becoming more and more speculative. And of course a company's P/E ratio changes every day as the stock price fluctuates.\n\nThe price/earnings ratio is commonly used as a tool for determining the value the market has placed on a common stock. A lot can be said about this little number, but in short, companies expected to grow and have higher earnings in the future should have a higher P/E than companies in decline. For example, if Amgen has a lot of products in the pipeline, I wouldn't mind paying a large multiple of its current earnings to buy the stock. It will have a large P/E. I am expecting it to grow quickly.\n\nPE is a much better comparison of the value of a stock than the price. A $10 stock with a PE of 40 is much more "expensive" than a $100 stock with a PE of 6. You are paying more for the $10 stock's future earnings stream. The $10 stock is probably a small company with an exciting product with few competitors. The $100 stock is probably pretty staid - maybe a buggy whip manufacturer.\n\nIt's difficult to say whether a particular P/E is high or low, but there are a number of factors you should consider. First, a common rule of thumb for evaluating a company's share price is that a company's P/E ratio should be comparable to that company's growth rate. If the ratio is much higher, then the stock price is high compared to history; if much lower, then the stock price is low compared to history. Second, it's useful to look at the forward and historical earnings growth rate. For example, if a company has been growing at 10% per year over the past five years but has a P/E ratio of 75, then conventional wisdom would say that the shares are expensive. Third, it's important to consider the P/E ratio for the industry sector. For example, consumer products companies will probably have very different P/E ratios than int
998852
They just break down the price of the stock or fund as a percentage. If you invested 25.00 and the price of the stock is 50.00 you would have you have a 50% or a half unit. This is a common practice for mutual funds and other investing vehicles. It allows you to decide how much money you want to contribute, and they can put your total allotment to work for you, instead of having to wait until you have enough money to buy a full share or unit.
1077002
Your estimation is dead on!  Nice job!\n\n100 Shares of a $300 stock, plus commission = $30010.\n\nTo find the exact break even point, I use the following equation:\n\n(P x 100) - $10 = 30010.  Where P is the final stock price.  With a little algebra, I can find P = 300.20  so the stock needs to rise from $300 to $300.20 per share.  What is the % increase?\n\n0.20 / 300 = 0.00067, or 0.067%.  Sounds like the person is using "percent of percent" [sometimes called "basis points"] rather than percent.
70181
I'm trying to do this like a basic math question, so forgive me if I do end up giving you the wrong answer. Firstly, I'm assuming that you're going to pay the deposit payment first right? Plus I hope that DP means deposit payment, because if I'm wrong you can just ignore what I typed below. I also assume that your 18% yearly interest would be divided into 12 months payment. Okay! We start!\nFirst, you minus the deposit payment of 144,000 out of the total price of 720,000, leaving you the balance of 576,000. This was already confirmed in your question. \nNext, you have to deduct the amount you pay for the first year, which is a total of 9,600 x 12 = 115,200. When you deduct 115,200 from 576,000, you get 460,800 left. With me so far? Okay, we'll move on...\nNow you have four years left to pay up, so basically you divide the balance of 460,800 between the four years. You'll get 115,200 per year. \nNow remember the 18% interest per year? You'll find that if you apply 18% interest per month, you'll get the same amount as calculated per year. So let's stick to calculating per month, shall we?\nRemember the 115,200 you have to pay each year? Now divide that amount by twelve (months) and then times the answer with 118%. Yes, 118%. \n(If you prefer using 18% and then adding that to the month's original payment, that's also fine. But it's the long way round)\nMeaning:\n(115,200 / 12 ) x (118 / 100) = 11328\nSo this means that you have to pay 11328 per month (interest already included)for the next four years. Got it?
244823
The amount (A) will be doubling, so substitute "2P" in for A. Then you can drop the "P" from each side by division and solve for t.\n\nA = Pe^(rt)\n2P = Pe^(rt)\n2 = e^(rt)\nln 2 = (rt) ln e\nln 2 = .054t (ln e = 1)\n(ln 2)/.054 = t\n(approx.) 12.836 = t\n\nDoes that sound correct? (It's been awhile since I've done these kinds of problems.)
10630
PEG refers to the P/E ratio (price divided earnings per share) divided by the projected earnings growth rate of the company.\nExample:  A company has a stock price of $10, earnings per share of $0.50 and a project earnings growth of 30%.  It's P/E ratio would be 20 (10/.5) and the PEG ratio would be 0.66 (20/30).\nNow imagine that the company had a projected earnings growth rate of 5%.  The resulting PEG ratio  would be 4.0 (20/5).\nInvestors often use the benchmarks of 1.0 or 1.5 as an indicator of a stock's valuation (expensive v. cheap).  I would argue that 1.0 is for low-growth companies and 1.5 for high-growth companies.  But, you can make your own judgements.\nBasically the PEG ratio allows investors to compare the price they're paying in relation to future earnings growth across different stocks.  All else being equal, you want to buy a stock with a lower PEG ratio because it means you're paying less for the same future earnings power.  But of course, all other things are not equal when comparing different companies, so you must consider all other relevant factors when making a decision.
673039
EAG is trading this morning. $1.54 last trade, has traded over 65000 shares this morning. Whatever broker you are using is a moron. The pennies you are saving from using a moron is costing you lots of aggravation and lost trading opportunity. There are lots of discounters out there...i would find another if i were you!
100569
Hi again, Stef. The $13,000 is not income per se. The interest you made on the principle (the original amount you deposited into the fund) is income. I do not know what you re doing with the dividends you make on the fund. Are you reinvesting it? Unless you are talking big, big, bucks here in dividends, you have no worries. However, I am concerned that you were charged so much for an 8 year old car.
983751
http://finance.yahoo.com/q?s=bud  go to this link and read a couple 8k and 10k's  there will be all the info you need
953517
It indicates that the company has liquidity issues. It has only 86 cents in current assets for meeting every dollar in current liabilities. A minimum current ratio of 1 is considered a requirement.\n\ncc
565111
I think you are looking for the P/E.  Divide the price of the stock by earnings per share.  You'll get the same answer if you divide the market value of the company by the total earnings (rather than EPS).  \n\nMarket value / EPS doesn't make sense.
907319
Without any additional details, one has to assume there are at least 2 series of preferred shares, one paying 5% on par value, which may presently be yielding more or less than 5% depending on whether mkt price of pfd is less than or greater than par ... and the redeemable,  which the company can redeem at par upon a fixed date.\n\nBe careful with the latter, though.  If share is presently trading above par value and redemption date is soon or has already passed, company has right to redeem at par.  Example:  share presently @ 28,50, retraction date coming up soon.  Depending upon interest rates, co might decide to redeem at par which, in this hypothetical example, could be 25.00.  A bad trip.\n\nHow to find out?  Ask the company for details.  Full-service brokers usually have elaborate schedules of preferred shares indicating maturity, redemption, extension & retraction dates.  Unfortunately, these days, some of these schedules are not so elaborate & some leave out important dates, ie the schedule is useless.\n\nThat's why it's best to ask the company.  If all else fails, the prospectus issued at the time of the redeemable preferred share issue will spell out all these details.  You'd find it on EDGAR.  It's a slog to read, though.
228551
P/E, growth, leverage, price variance, income variance
442467
It depends on the fixed costs since the contribution margin is the excess of sales over the fixed costs.  The breakeven point takes into account these fixed costs, so you'll have to remove that factor before getting a percentage.
410999
Go to morningstar and look up the weighted average PE ratios of the funds for stock funds and duration for the bond funds.  As most funds underperform the indices over time, treat them as index funds.\n\nFor stocks, never hold a fund with a PE over 15.  It works out that unless your expected return is very low, fifteen is a good rule of thumb for discounted cash flows to time 0, as an upper bound for price.  You can take the PE, find the estimated growth of the indices and go to moneychimp.com and estimate return.  Keep tinkering with the growth rate until 1.00 in earnings yields a PE of the same value.\n\nFor bond funds, look up the duration and credit quality.  Junk bonds can lose extraordinary amounts in stressful times.  I remember a time in the '90's where one third of junk simply was written off the balance sheets of funds.  In any case, look up the duration.  Figure out the weighting between classes (morningstar should tell you) and go the the Financial Times of London or Barrons or the Wall Street Journal and look up the yield for that approximate duration or average maturity.  That minus the fees will be your yield.\n\nCompare this to your goals.\n\nMy guess is that if you do this, you will be in for a shock and be very upset and disappointed.  You might then look at bankrate.com and buy a moneymarket or CD from GMAC Bank or the State Bank of India (member FDIC).  You will likely do better than in the markets.  Prices are high in most funds relative to what they provide.\n\nMy checking account at GMAC Bank pays me 4.65% and I am globally among the best investors in the world, from a purely statistical perspective.  Most general public investors are in over their heads but they don't know it.  The professionals don't want to tell people because if you withdrawal your money they get lower fees.\n\nThere are not a lot of funds that are reasonably priced compared to their underlying assets, and have a good management history.  I know, I have looked and I am trained to evaluate portfolios.
654497
Generally, if there is negative equity, reports will give N/A (not applicable).  The same goes for PE ratios when earnings are negataive.
866010
If you are using continuously compounding interest, you need to use the following formula...\n\nA = Pe^(rt)    What this means is your future amount is determined by principle multiplied by e to the rate times time.\n\nHopefully that makes sense. \n\nThe site below has a calculator where you can input your information and get a good estimate.