trying to undertand how to read a stock quote?
I’m looking at a Brazilian Company for a class and the
P/E=.06,
and the EPS=605.50.
What exactly does this mean? Good time to buy or no?
These ratios are essentially about the stability of the company in the market place. You use them when you are looking for a long-term investment, one that will return you an income through dividends.
EPS (Earnings per share) is much the same from one company to the next, and is easy to understand.
Price/(Earnings per share), though, can be calculated in a number of different ways. In some cases, it’s better when the number is high; in other cases, one wants it relatively low. See
http://www.investopedia.com/terms/p/price-earningsratio.asp
for a relatively clear explanation.
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fcas80 March 12th
Stock Price / Earnings = P/E = .06
Earnings / Number of Shares = 605.50
Good time to buy or no? I have no idea.
References :
Peter B March 12th
These ratios are essentially about the stability of the company in the market place. You use them when you are looking for a long-term investment, one that will return you an income through dividends.
EPS (Earnings per share) is much the same from one company to the next, and is easy to understand.
Price/(Earnings per share), though, can be calculated in a number of different ways. In some cases, it’s better when the number is high; in other cases, one wants it relatively low. See
http://www.investopedia.com/terms/p/price-earningsratio.asp
for a relatively clear explanation.
References :
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