8 Aug 2012 He compared Facebook's PE ratio based on 2013 earnings estimates to Amazon's, Google's, Apple's, and a few other tech companies. As you The P/E ratio, or price-to-earnings ratio, is a quick way to see if a stock is under- or overvalued. As it sounds, the metric is the stock price of a company divided by the company’s earnings per share.What makes a good P/E ratio depends on the industry. There's been no shortage of analysis on the incredible run that tech stocks have had this year, and despite a few volatile patches recently, the. 3 Tech Stocks With Surprisingly Low P/E Ratios The P and E ratio measures the price of the stock divided by its trailing 12-month per-share net earnings. If a company has earned $1 a share over the last year, but its stock price has reached $10, then its P/E ratio is 10. The higher the P/E multiple, the richer the valuation assigned to the company by the market. What’s not immediately clear is what makes a good P/E ratio. While there are general rules of thumb, the ratio itself does require some context. You absolutely do NOT want to buy a stock simply because of one ratio. But it is very helpful to understand when you see a good P/E ratio vs. when you don’t. Currently the tech sector has a forward price-earnings ratio (P/E), which relates the price an investor is willing to pay to the share price, of 18.7, but an earnings growth rate this quarter of In the world of investments, a company’s price-to-earnings ratio, or P/E ratio, is a measure of its stock price relative to its earnings. If you’re trying to determine whether a stock is a good investment, the P/E ratio can help you gauge the future direction of the stock and whether the price is, relatively speaking, high or low compared to the past or other companies in the same sector.
10 Nov 2017 The price-to-earnings ratio is an oft-used tool for judging a stock's Some solid stocks have P/E ratios that are deceptively high, while other perfectly healthy More: Follow USA TODAY Money and Tech on Facebook. 24 Feb 2020 A negative PE ratio means that a stock has negative earnings. In other with strong revenue growth (like some tech stocks) are unprofitable.
3 Dec 2019 You can compare a stock's P/E with other stocks in the sector, or even compare it with the P/E average for the entire sector. Being able to see 16 Oct 2019 The P/E ratio of a stock gives important insight into its growth potential, but what is a good price to earnings ratio? And how For example, PEs of tech companies are usually higher than those of media companies or utilities. PE Ratio by Sector (US) on which companies are included in each industry Income (only money making firms), Expected growth - next 5 years, PEG Ratio. Stocks and shares. Home · Investments. Show me: ALL · Bank Now could be a good time to bag an investment bargain. We like investment trusts here at
2 Reasons Tech Companies Have High P/E Ratios P/E ratio, and why investors shouldn't let a high price-to-earnings number scare them away from an otherwise appealing stock. Interestingly enough, according to our Zacks Sector Rank data, the broad "Computer and Technology" sector has an average P/E ratio of 21.08, which is significantly "worse" than the S&P 500 average In the world of investments, a company’s price-to-earnings ratio, or P/E ratio, is a measure of its stock price relative to its earnings. If you’re trying to determine whether a stock is a good investment, the P/E ratio can help you gauge the future direction of the stock and whether the price is, relatively speaking, high or low compared to the past or other companies in the same sector.
Currently the tech sector has a forward price-earnings ratio (P/E), which relates the price an investor is willing to pay to the share price, of 18.7, but an earnings growth rate this quarter of In the world of investments, a company’s price-to-earnings ratio, or P/E ratio, is a measure of its stock price relative to its earnings. If you’re trying to determine whether a stock is a good investment, the P/E ratio can help you gauge the future direction of the stock and whether the price is, relatively speaking, high or low compared to the past or other companies in the same sector. Technology Sector Price to Earning ratio is at 34.5 in the 4. Quarter 2019 for Technology Sector, Price to Sales ratio is at 4.6, Price to Cash flow ratio is at 16.51, and Price to Book ratio is 1.58 More on Technology Sector Valuation The P/E ratio helps investors determine the market value of a stock as compared to the company's earnings. In short, the P/E shows what the market is willing to pay today for a stock based on its I'm a tech investor and the best answer I can give you is: "I know it when I see it" There are a lot of factors at play when determining a good* P/E ratio so it's hard to give a straightforward answer. Look at enough companies over time and you