Questions tagged [price-earnings-ratio]
59 questions
18
votes
3 answers
What is the p/e ratio?
What is the p/e ratio and how do I find it for a company?
Pablo Fernandez
- 1,199
- 1
- 9
- 12
13
votes
1 answer
Why was S&P 500 PE Ratio so high on May 2009
When I looked at S&P 500 PE Ratio chart today, I am surprised that the PE ratio was so high on May 2009, which was 123.73, and it decreased dramatically afterwards. I have no idea why this happened?
CSnerd
- 433
- 1
- 4
- 7
12
votes
1 answer
Where can I find historical P/E ratios for companies?
Since the market conditions are down, I am considering on investing a little money in stocks, and holding them long-term.
I would like to see which stocks are 'on sale' and am looking at the P/E ratios to determine this. However, I don't know…
Kamilski81
- 397
- 1
- 3
- 9
9
votes
2 answers
What is the P/E ratio for a company with negative earnings?
I know that PE ratio = (share price) / (net earnings per share), so does a company with a net loss mean they have a negative 1-year trailing PE? Is this surprising/unusual? What about for a company IPO?
This was prompted by Splunk's IPO;…
xyz
- 775
- 2
- 7
- 10
8
votes
2 answers
If a stock price is overvalued or undervalued, what eventually causes it to return to being fairly valued?
In the value investing strategy of Warren Buffett, Benjamin Graham, etc. an investor is searching for stocks that are reasonably priced considering the value of the company as a whole. You are buying a business, not just a stock. When following…
Sam
- 181
- 3
7
votes
1 answer
Where can you find historical PEs of US indices?
Indices tracking ETFs
* DIAMONDS Trust I (ticker: DIA) tracks DJIA
* SPDRs (ticker: SPY) tracks S&P 500
* NASDAQ 100 Trust (ticker: QQQQ) tracks NASDAQ 100
* iShares Russell 2000 (ticker: IWM) tracks Russell 2000
* MidCap SPDRs (ticker: MDY) tracks…
JP.
- 620
- 1
- 7
- 16
6
votes
4 answers
Why does the biotechnology industry have such a high PE ratio?
I'm looking at this link, which lists P/E ratios by industry. I see that biotechnology has a P/E ratio of 145, which is very high compared to other industries. What is so special about this industry that results in such a high P/E ratio?
I…
Victor123
- 16,084
- 40
- 133
- 234
5
votes
2 answers
Does the P/E ratio of REITs matter for dividend investing?
When buying REITs, one essentially looks for the dividend yield (last dividend vs. current share price).
If it's an established fund, does it really matter what's the P/E ratio if one capitalizes on the dividend yield?
For example, if I buy a REIT…
Sparkler
- 528
- 3
- 12
5
votes
3 answers
How to calculate PE ratios for indices such as DJIA?
I want to record Dow Jones Industrial Average's PE. Yahoo Finance gives N/A [1]:
>>> import y_finance
>>> print y_finance.get_price_earnings_ratio('^DJI')
N/A
So:
How to calculate the PE for indices such as DJI?
How do you weight each PE of a…
JP.
- 620
- 1
- 7
- 16
5
votes
1 answer
How is it possible that a stock has a P/E of 0.01?
I was looking at this stock: Berkshire Hathaway Inc. (BRK-B) (The Class B shares).
How come it has such a low P/E ratio?
DODODODO
- 51
- 1
3
votes
2 answers
Understanding corporate earnings manipulation
While reading earnings manipulation on investopedia, I came across following sentences:
Another form of manipulation is to change company policy so more costs are capitalized rather than expensed immediately. Capitalizing costs as assets delays the…
Mahesha999
- 303
- 1
- 8
3
votes
3 answers
P/E (or similar) for index funds?
I'm looking to compare index funds, such as VTIVX vs VGTSX vs VFIAX, etc.
I've found these posts that address P/E ratios for the S&P 500:
API for retrieving index P/E ratio?
Where can I find S&P 500 P/E ratios?
Do similar metrics exists for other…
derelict
- 548
- 6
- 15
3
votes
2 answers
Price Earnings Ratio
OK so struggling to get my head around why a high price earnings ratio is preferable to a low P.E. . If there is a big gap between a company's share price and its earnings per share surely that would drive potential investors away?
Mr. Electron
- 31
- 1
3
votes
3 answers
Investing: P/E Ratio basic question
I'm just starting out in investing so I apologize if this comes across as annoyingly simple question. I've just read about PE Ratio and I came across this video from investopedia P/E Ratio Video which I thought was simplified and was therefore…
Peng Seow
- 31
- 2
3
votes
1 answer
Why do PE ratios for small cap stocks tend to be greater than those for large cap stocks?
As a general rule, why is the PE ratio of small cap stocks greater than the PE ratio of large cap stocks? Is it just a coincidence? Or is there a reason?
Victor123
- 16,084
- 40
- 133
- 234