| Price-Earnings
Ratio - P/E |
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Calculated
by:
EPS is
usually from the last four quarters (the trailing P/E ratio), but
sometimes from the estimates of the earnings expected in the next
four quarters (the projected P/E ratio), or from the sum of the last
two actual quarters and the estimates of the next two quarters.
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Sometimes
referred to as the "multiple." For the most part, a high P/E means
high projected earnings in the future.
But actually the P/E Ratio doesn't tell a whole lot, but it's useful
to compare the P/E Ratios of other companies in the same industry,
or to the market in general, or against the company's own historical
P/E Ratios. |
Understanding
the P/E Ratio - A quick look at the P/E Ratio
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Dictionary
