2022年6月1日星期三

More income??? In THIS economy?

Investing Daily
One of the most commonly cited valuation metrics for stocks is the price-t...
More income??? In THIS economy?

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Ratios to Help You Spot Good Stocks
By Scott Chan

One of the most commonly cited valuation metrics for stocks is the price-to-earnings (P/E) ratio. It is calculated by dividing the current stock price by earnings per share (EPS).

The EPS used in the denominator is typically the EPS in the preceding four quarters (trailing P/E) or the expected EPS over the next four quarters (forward P/E). Of the two, I prefer the forward P/E because it is forward looking. Sometimes, analysts will look further down the road, and calculate the expected P/E ratio for, say, three years in the future.

Look Beyond P/E

However, although it is perhaps the most well-known metric, P/E is not meaningful in some cases.

Read More...

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