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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 ...
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 ...
The definition of the price-to-earnings ratio, usually called a P/E ratio, is the ratio between how much a stock costs and how much in profits that company is making.
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 make ...
When you start research stocks, and trying to decide where to put your money, you're likely to come across the term price-earnings ratio. At its most basic, the P/E is a way to value a company by ...
A REIT's P/FFO is a really good way to work out a theoretical return. If a REIT has a P/FFO of 15, you can divide 1 by 15 to get 6.67%, your theoretical return holding everything constant. So that ...
Earnings yield. Earning yield is the quotient of earnings per share (E), divided by the share price (P), giving E/P. [1] It is the reciprocal of the P/E ratio. The earning yield is quoted as a percentage, and therefore allows immediate comparison to prevailing long-term interest rates (e.g. the Fed model).
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...