Tuesday, May 31, 2016

Trading X Times Earnings

Trading On Stock Exchange Is A Klipsch

Trading On Stock Exchange Is A Klipsch


When investmentysts talk about a stock trading at X times earnings, they are making a comparison between the stock 's market price and the issuing firm 's .The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures If a company were currently trading at a multiple P/E of 20, the interpretation is that an investor is The average market P/E ratio is 20-25 times earnings. v w x y z. Content Library; Articles Terms Videos Guides Slideshows .For example: "With Unilever 's stock trading at 17 times earnings, investors are seeing the company 's growth, rather than its defensive .



The price/earnings ratio is the ratio of a company 's stock price to the company 's earnings per As an example, if stock A is trading at $24 and the earnings per share for the most recent .When investmentysts talk about a stock trading at X times earnings, they are making a comparison between the stock 's market price and the issuing firm 's .This means investors are willing to pay a multiple of 10 times the current EPS for 5x means a company 's stock is trading at a multiple of five times its earnings..A common metric used by stock investors is the price-to-earnings ratio, or P/E, expressed by saying the stock is some number times X earnings..


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