PE Ratio - Shares
PE Ratio - Shares
PE Ratio - Shares
EPS 65.4
Dividend 0.3
P/E Ratio: Price to Earnings Ratio or Price to Earnings Multiple is the ratio of share price of a stock to its
earnings per share (EPS).
A good P/E ratio is lower than the average P/E ratio, which is between 20–25. When looking at the P/E
ratio alone, the lower it is the better.
If the P/E ratio is high: In some cases, a high P/E ratio can mean investors believe that the stock’s
earnings will increase in the future. On the other hand, a high P/E ratio can indicate that a stock may be
overvalued.
If the P/E ratio is low: Alternatively, a low P/E ratio may indicate that a stock is undervalued. This can
lead to investors seeing the low P/E ratio as an opportunity to buy the stock expecting the price to
eventually rise to reflect the company’s increased earnings. Other times, a low price-to-earnings ratio
can mean that investors believe that the company’s profits will decline in the near future.
With an understanding of what a P/E ratio can teach you about a stock, it’s important to also keep the
ratio’s shortcomings in mind.
PEG Ratio: The PEG ratio is a company's Price/Earnings ratio divided by its earnings growth rate over a
period of time (typically the next 1-3 years). The PEG ratio adjusts the traditional P/E ratio by taking into
account the growth rate in earnings per share that are expected in the future.
PEG ratios higher than 1.0 are generally considered unfavorable, suggesting a stock is overvalued.
Conversely, ratios lower than 1.0 are considered better, indicating a stock is undervalued.
PEG=P/E ÷ EGR
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