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Topic: PE ratio

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	PEG ratio - Wikipedia, the free encyclopedia
		The PEG (price, earnings, growth) ratio compares the PE (price/earnings) ratio to the growth rate, which can be either historical PE ratios and growth rates or estimated future rates.
		PE ratio / earnings (or earnings per share) growth in parts-per-hundred (%) (year-over-year trailing or over future years).......
		One reason investors may prefer the PEG ratio over measures such as earnings, revenues, tangible assets, or book value to price (market cap) is that such measures do not account for a company's potential for growth.
	en.wikipedia.org /wiki/PEG_ratio (362 words)

	P/E ratio - Wikipedia, the free encyclopedia
		The PE ratio of a company is a significant focus for management in many companies and industries.
		As mentioned earlier, a higher PE ratio is the result of a sustainable advantage that allows a company to grow earnings over time (ie, investors are paying for their peace of mind).
		The PE is calculated primarily for common shares, not for preferred shares.
	en.wikipedia.org /wiki/P/E (2042 words)

	PEG ratio - Wikipedia, the free encyclopedia
		If one would buy a portfolio of ten stocks with a PEG ratio of 0.5 and another portfolio of ten stocks with a PEG ratio of 1.5, there is not much to suggest whether the 0.5 portfolio will outperform the 1.5 portfolio over the next 1, 5, or 10 years.
		Finance in their "Key Statistics" (provided by Capital IQ) is not the trailing PEG ratio.
		Rather, it is the expected P/E for next years earnings divided by the expected annual growth rate over the next 5 years (the exact formula is not mentioned, they are guessed below).
	en.wikipedia.org /wiki/PEG_Ratio (362 words)

	PE Ratio (Price Earnings Ratios) for the SP500
		Below is the SP500 price earnings ratio (commonly referred to as the "PE ratio" or the "P/E ratio") since 1943.
		The PE ratio is one of the most widely watched measures of valuation for both the stock market as a whole and individual stocks.
		The PE ratio does not work very well as a timing device, but it can give you some idea of the whether the market is "cheap" or "expensive".
	www.lowrisk.com /sp500pe.htm (277 words)

	The Telegraph - Calcutta : Business (Site not responding. Last check: 2007-10-08)
		PE ratio is the term used for the ratio of market price of a share to earnings per share (EPS).
		A forward PE ratio is calculated as the ratio of the last traded market price of the share to its projected EPS for the current or future financial year.
		A PE ratio fund is a fund that seeks to analyse the market on the basis of the PE ratios of stocks and invest in stocks that have the best potential of realising their values.
	www.telegraphindia.com /1040517/asp/business/story_3252685.asp (340 words)

	DIG: The Limits of PEG Ratio
		The PE ratio of a high-growth firm is a function of the expected extraordinary growth rate; the higher the expected growth, the higher the PE ratio for the firm.
		As illustrated in the graph, the PE ratio for this firm is lower than the expected growth rate when the Treasury bond rate is greater than 7%, though it is not undervalued.
		Similarly, the PE ratio for a firm where high growth is expected to last five years will be lower than the PE ratio for a firm where the same high growth is expected to last ten years.
	dignet.home.mindspring.com /limitsofpeg.htm (853 words)

	Invest FAQ:Analysis:Price-Earnings (P/E) Ratio
		P/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).
		The price/earnings ratio is commonly used as a tool for determining the value the market has placed on a common stock.
		PE is a much better comparison of the value of a stock than the price.
	invest-faq.com /articles/analy-pe-ratio.html (796 words)

	2003 Annual Meeting of the American Accounting Association (Site not responding. Last check: 2007-10-08)
		Proponents of the PEG ratio underscore the fact that it takes account of differences in short-run earnings growth and thus it provides a ranking that is superior to the ranking based on PE ratios.
		But even though the PEG ratio may provide an improvement over the PE ratio, it is arguably still too simplistic because it implicitly assumes that the short-run growth forecast also captures the long-run future.
		Although the correlation between the refined estimates and estimates of the expected rate of return implied by the PEG ratio is high supporting the use of the PEG ratio as a parsimonious way to rank stocks, the estimates based on the PEG ratio are biased downwards.
	aaahq.org /AM2003/abstract.cfm?submissionID=47 (265 words)

	Knowledge King - PE ratio (Site not responding. Last check: 2007-10-08)
		In Finance, the PE ratio of a stock (also called its "multiple") is calculated as:
		The stock is said to have a PE of 8 (or a multiple of 8).
		The PE ratio also tells you how long it will take before you can recover your investment (ignoring of course the time value of money).
	www.knowledgeking.net /encyclopedia/p/pe/pe_ratio.html (619 words)

	How Important Is PE Ratio
		By comparing it to the PE ratio of companies in the same industry, the PE provides a metric to judge how reasonable the share price of a company is. Companies with lofty PE must grow their earnings consistently to meet the investors’ high expectations.
		High PE ratios are usually associated with growth stocks, and frequently flag the question — is it worth the risk to participate in a bright future, or maybe the share price is overvalued.
		Companies’ PE ratio are one piece of the puzzle, and have to be taken with other factors, such as price-to-book ratio, sales projection, long term interest rate and inflation.
	www.arabnews.com /?page=6§ion=0&article=49301&d=2&m=8&y=2004&pix=business.jpg&category=Business (779 words)

	PE - Wikipedia, the free encyclopedia
		Peterborough: PE is the British post code for the region in eastern England which is served by Peterborough postal sorting office.
		PE ratio - price-to-earnings ratio (used in finance)
		Pe is one of the transliterations of the fourth syllable in Buddhist "Six syllable mantra" Om mani padme hum.
	en.wikipedia.org /wiki/PE (192 words)

	Price Earnings Ratio (PE) (Site not responding. Last check: 2007-10-08)
		P/E ratio is used as a measurement of the relative cost of the stock.
		The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period.
		A P/E of 40, would mean that it would take 40 years for the investor to see a return on the investment.
	www.chartfilter.com /fundamentals/pe.htm (349 words)

	What is a PE Ratio and is my stock's PE too high?
		Stocks with high PE ratio, when compared against competitors within a particular industry, generally indicate that it is being valued by the market on the basis of high-expected growth potential relative to other companies.
		For instance, if your stock has a PE ratio of 50 as compared to an average of 20 for competitors, it would indicate that the market expects earnings growth of 50% compared to competitors that are expected to grow at 20%.
		PE ratios should be viewed on a relative and on a historical basis.
	www.the-adviser.com /Stocks/highpe.htm (286 words)

	P/E Ratio (Site not responding. Last check: 2007-10-08)
		A PE ratio measures the expectation of company performance with regard to its earnings growth potential and risk.
		For example, a company with a higher PE ratio than its competitors could be an indication that it has a value placed on it based on higher than expected growth potential than competitor companies.
		In this example a company with a PE ratio of 20 would expect earnings growth of 20%, compared to say an average figure of 10 for competitors, where earnings growth is expected to be only 10%.
	managers-net.com /pe_ratio.html (206 words)

	PE Ratios (Site not responding. Last check: 2007-10-08)
		A trailing PE ratio is calculated by dividing the current price of the stock by the company's earnings per share over the past fiscal year.
		The median PE ratio is a Value Line concept calculated by taking a rounded average of four middle values of the range of average P/E ratios for the company over the past 10 years.
		PE ratios change almost everday (because the price of a stock changes almost every day); Value Line averages those daily ratios for a year, collects the previous 10 year averages, orders them from highest to lowest, then picks the middle 4 in that order and averages those four.
	home.mn.rr.com /eduvest/pe.htm (891 words)

	PE Ratio (Site not responding. Last check: 2007-10-08)
		PE Ratio of a stock is calculated by dividing price of a stock on a particular day by usually its latest EPS.
		As an example we may say that a stock may be considered overvalued if it is trading at a PE of 50, undervalued if it is trading at a PE multiple of 5 and fairly valued if it is trading at a PE of 10.
		But again, for a blue chip a PE of even say 20 may be undervalued and for a new company or un professionally managed company a PE of even say 6 may be overvalued.
	peratio.stockmarketguide.org (258 words)

	PE ratio
		Many investors use the PE ratio to determine if a stock- or the stock market as a whole- is expensive or not.
		For example, the average PE ratio for the SandP 500 index from 1950-2000 was 15.4.
		When the market peaked in early 2000 the PE ratio of the SandP 500 was a relatively high 30- suggesting that stocks were expensive.
	www.getfolio.com /investment_stocks/pe-ratio.asp (537 words)

	P/E ratio - Wikipedia, the free encyclopedia
		A P/E ratio of 14 corresponds to an average annual return of 7% (1/14th).
		A few reasons a stock might have a high PE ratio are:
		This is the PE ratio adjusted by a growth coefficient.
	www.wikipedia.org /wiki/PE_Ratio (2042 words)

	Fool.com: Earnings-Based Valuations [Valuation]
		In the end, P/E has to be viewed in the context of growth and cannot be simply isolated without taking on some significant potential for error.
		If the company had a P/E of 20 and expected growth of 10% a year, it would have a PEG of 2.0, worth double what it should be according to the assumption that the P/E should equal the EPS rate of growth.
		Thus, if the current P/E is 10 but analysts expect the company to grow at 20% over the next five years, the YPEG is equal to 0.5 and the stock looks cheap according to this metric.
	www.fool.com /School/EarningsBasedValuations.htm (1332 words)

	Energy and protein requirements
		It is logical, therefore, that the appropriate PE ratio for an individual should be described as part of the distribution of possible satisfactory ratios of protein to energy requirements among similar individuals.
		From the distribution of possible PE ratios, probability statements may be derived concerning the probable adequacy or inadequacy of any particular PE ratio for an individual of the specified type (age, sex, activity, etc.).
		The equation defines a PE ratio such that, with any probability (or risk) one wishes to assign, there is confidence that a higher observed dietary ratio would meet or exceed the true requirement ratio of a random individual in the group—a “safe” PE ratio for that class of individual.
	www.fao.org /DOCREP/003/AA040E/AA040E11.htm (3090 words)

	RATIONAL STOCK VALUATION
		The PE ratio is a parameter that measures the price of the stock relative to one year of earnings.
		This example shows that the SP500 average PE ratio can be quite arbitrary; thus, is not a reliable parameter for which to generally determine valuation as it is often used.
		Granted they do mention PE ratio, but I have never heard an explanation of rational valuation where relationships to the future earnings sum is explained so the audience can make a judgement for themselves on valuation.
	members.aol.com /SHinrichs9/stocks/ratval.htm (7988 words)

	People's Daily Online -- Reduced PE ratio of Chinese stocks attracts investor attention (Site not responding. Last check: 2007-10-08)
		The Chinese A-share market has become enticing as the price earning ratio (PE ratio) of Hushen 300 Index, which reflect the whole fluctuation of China's Shanghai and Shenzhen Stock Exchanges, and is now about half of that of their equivalents on the US stock market, China Securities Journal reported.
		The PE ratio of Hushen 300 Index stands at 14.20 times, and it would lower to 10.92 times if potential compensation rate of 30 percent in the ongoing reform to solve the split share structure was taken into account, according to the newspaper published by Xinhua.
		The PE ratio of Hang Seng Index of blue chips on Hong Kong stock market Dow Jones Industrial Average of blue chips and Nasdaq Index is 15.34, 17.8 and 47.56 times.
	english.peopledaily.com.cn /200505/26/eng20050526_186973.html (608 words)

	PE Ratio (Site not responding. Last check: 2007-10-08)
		To have faith in a comparison of PE ratios, you should be comparingcomparable stocks.
		Well, the price earnings ratio or sometimes known asearnings multiple is nothing more than the number of dollars the market is willing to pay for a privilege to be able to earn adollar forever in perpetuity.
		The PE is calculated primarily for common shares, not for preferredshares.
	www.therfcc.org /pe-ratio-29178.html (668 words)

	EDMP Inc. - Demystifying the PE Ratio
		The PE Ratio's value is as a barometer or tool used to measure important investment principles relative to each other.
		The PE Ratio, used properly, assists the investor in the rational evaluation of the realistic probabilities of achieving a long-term rate of return and the amount of risk taken to get there.
		It is important to note, however, that a higher PE Ratio does not necessarily mean that the company has a higher valuation or that it is more expensive than a company with a lower PE Ratio.
	www.edmpinc.com /generalinvesting/demystifying.htm (2405 words)

	PEG Ratio
		If you've been investing for a little while now, you probably know what a P/E ratio is. The P/E ratio is not perfect because some companies are worth a high P/E and some aren't.
		The PEG ratio is figured by taking the P/E ratio and dividing it by the earnings growth rate.
		For example, if XYZ corporation has a P/E ratio of 26 (about average) and a growth rate of 15% per year, its PEG ratio would be 1.73 (26/15).
	www.teenanalyst.com /stocks/pegratio.html (355 words)

	PE Ratio
		The lower the P/E ratio, the better, as long as it is above zero.
		I have seen stocks that were a "bargain" (according to the P/E) drop even lower in price and I have seen grossly overvalued stocks continue to rise and hold their gains.
		I'm not saying that P/E ratio is completely useless, but other more important factors must also be considered, particularly growth and earnings.
	www.legitimateopportunities.com /invest/fundanal/peratio.htm (251 words)

	Understanding the Price-to-Earnings Ratio
		The PE ratio also shows an investor how much he or she would pay today—remember that the "price" part of the PE ratio is just the stock’s market price—for a dollar’s worth of the company’s earnings.
		The PE ratio tells investors quite a bit about a company because it shows whether the company’s stock is expensive (investors consider stock having a "high" PE ratio to be expensive) and how much investors think the company will grow in the future.
		But generally speaking, a PE ratio in the 30s or higher is thought to be fairly high and a PE in the mid-teens is thought to be low.
	googolplex.cuna.org /12433/cnote/story.html?doc_id=651 (2149 words)

	>>Domain Mart - Domain Names Are Cheap!
		The PE ratio is the multiple obtained by dividing the market price per share by the earnings per share over a period, which is equivalent to an asset’s market value divided by its earnings.
		The acquisition of a portfolio of assets is typically valued at a PE ratio that is lower than the average of individual PE ratios.
		Thus, PE of a traffic domain name selling at 4 is considered undervalued to the range of its peer group with an average PE of 5-7.
	domainmart.com /news/PE_value.htm (533 words)

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