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Robert Shiller's plot of the S&P composite real price–earnings ratio and interest rates (1871–2012), from Irrational Exuberance, 2d ed. [1] In the preface to this edition, Shiller warns that "the stock market has not come down to historical levels: the price–earnings ratio as I define it in this book is still, at this writing [2005], in the mid-20s, far higher than the historical average
Valuation metrics like the price-to-earnings (P/E) ratio help us understand whether a security is cheap or expensive relative to history. ... P 500 year-end price target: 7,100. This is on $275 ...
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 ]
And with a trailing price-to-earnings ratio of 21.7 -- slightly below its 10-year median of 22.5 -- it offers a more than fair valuation. Don’t miss this second chance at a potentially lucrative ...
Its trailing price-to-earnings (P/E) ratio of around 184, caused by the previously mentioned rise in operating expenses, may seem high. That likely means its forward P/E ratio of 36 is more ...
Stock B is trading at a forward P/E of 30 and expected to grow at 25%. The PEG ratio for Stock A is 75% (15/20) and for Stock B is 120% (30/25). According to the PEG ratio, Stock A is a better purchase because it has a lower PEG ratio, or in other words, its future earnings growth can be purchased for a lower relative price than that of Stock B.
Price-Earnings Ratio. You find a P/E ratio by dividing a stock’s share price by the earnings per share, or EPS, which is simply the total net profits from the last year divided by the total ...
Conversely, $2,309.60 per Fair Isaac share may appear expensive in comparison, with its much smaller earnings — about $6 in the most recent quarter — relative to share price.