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The price–earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. As an example, if share A is trading at $24 and the earnings per share for the most recent 12 ...
PEG ratio. The ' PEG ratio' ( price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share ( EPS ), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus, using just the P/E ratio would ...
The cyclically adjusted price-to-earnings ratio, commonly known as CAPE, [1] Shiller P/E, or P/E 10 ratio, [2] is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings ( moving average ), adjusted for inflation. [3] As such, it is principally used to ...
One of the most commonly used valuation metrics in investing is the price-to-earnings (P/E) ratio. It tells you how much you'll pay per dollar of earnings for any given stock.
For growth investors, an important metric to consider is the price/earnings-to-growth (PEG) ratio. It considers the P/E ratio along with how much growth analysts expect from the business in the ...
Earnings per share ( EPS) is the monetary value of earnings per outstanding share of common stock for a company. It is a key measure of corporate profitability and is commonly used to price stocks.
Moreover, Nvidia's price/earnings-to-growth ( PEG) ratio of 1.55 and price-to-sales ratio of over 42 are well above the averages for technology stocks and the semiconductor industry, respectively.
Valuation using multiples. In economics, valuation using multiples, or "relative valuation", is a process that consists of: identifying comparable assets (the peer group) and obtaining market values for these assets. converting these market values into standardized values relative to a key statistic, since the absolute prices cannot be compared.