What is the Price-to-Earnings (PE) Ratio?
What is the Price-to-Earnings (PE) Ratio?
This video provides a quick overview of Price-to-Earnings (PE) Ratio and how it is calculated.
⚠️ Disclaimer: The information in this video is general information for educational and entertainment purposes only and should not be taken as constituting professional adviser, I am not a financial adviser. You should consider seeking independent financial advice to check how the information relates to your unique circumstances. I will not be held liable for any losses incurred for investments or trades that attempt to duplicate my strategies. Some of the below links are eBay affiliate links where I’ll earn a small commission if you make a purchase at no additional cost to you.
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Thanks for this educational video!!
What a great concise explanation of the P/E ratio!
So in short: P/E ratio is price/(earnings per share) where earnings refers to profit.
Actual earnings that could go to the shareholder depends on dividend, but the earnings per share amount to the upper limit; ie the potential payback of the stock.
Thank you sir ! your explanations are concise, clear, easy to understand even for a beginner like myself.
So a low P/E Ratio is good, however, if it’s high it can also be good…. simplicity and complexity combined🤦🏻♂️
The reciprocal of the price / earnings ratio gives the annual return. A savings book with 4% interest would have a price / earnings ratio of 25 (= 1/0,04).
I’d like to see a video that explains the price to sales ratio!
Somehow, I end up here every single day
Amazing Video, this finally helped me understand P/E ratio, I Get it!!
These videos are amazing
when calculating P/E ratio, are you taking earnings for the entire year?
This is the most simple video about E/P Ratio basics.
Great video! Did not have to hit replace to understand everything. Thank you!
Thanks for the video. Great explanation!
Haters are going to hate.
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Congratulations on such an amazing video, can’t wait to see your channel grow even bigger.
This video was spot on cause I would definitely want that shovel that pushes itself and I don’t even have anything I need to shovel. So I’ve deduced that the company’s share price would indeed rise.
Also thanks for this short and super helpful breakdown!
Thank you for sharing
This video is so useful. I’ve been trying to understand this ratio for so long but it makes better sense after watching this. Thank you.
is earnings referring to yearly earnings? if so where can you find a company’s yearly earnings? where can you find how many stocks are issued? what are the factors considered to calculate projected future earnings? are there any formulas people use to get an idea of that?
I’m starting to learn about investing and right now I’m trying to learn more about P/E ratios, more specifically trailing and forward P/E ratios. I wanted some clarification for my confusion with P/E ratios. When people talk about P/E, or when websites like Google display P/E ratio data, are they generally referring to the trailing P/E of companies since the 4 quarters have already been completed and an accurate P/E ratio is available for those companies? Or is there a "current P/E" ratio where they use the EPS available from the quarters of the year already completed? And if so is this "current P/E" ratio the one people generally refer to when they talk about P/E ratios of companies?
Thanks for any and all help!
This video is so well-made and so easy to understand.
Thank you for breaking this down for me. Peter Lynch’s book was sizzling my brain.
Beware that earnings can be manipulated in many different ways through accounting estimates and choices. Also, the growth in earnings, and volatility in earnings may justify a lower p/e for the second company.
This is my favourite channel. I especially like it when you explain everything so nicely. I wish you a lot of success with the channel and happy life.
I like a company who knows what they are talking about and able to make other novice understand as well
P/E
two things to remember:
1. value evaluation
2. growth evaluation
Finally someone who explain it well. Thank you 👏🏽💯
Tesla P/E ratio is 1000. They better invent a self-driving shovel on wheel ASAP.
👍
One of the first figures i look at just to get an idea of how expensive the stock currently is
Management, product and brands, innovation and most importantly is the company operating ethically are also key measures as well. Cash flow statements and footnotes and annual reports to Sec are just as important. Great videos. 👍
well done video, masive amount of information in 5 minutes
Great and simple explanation! Thank you.
Please create a playlist of various ratios and calculations used to analyze stocks.
Let’s be honest this wasn’t in your recommendations you searched for it.
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