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Stock valuation (White Giant)

Simcountry: Simcountry Bulletin Board  Stock valuation (White Giant)

Matt Crouch (Fearless Blue)

Saturday, November 27, 2004 - 04:31 am Click here to edit this post
equity market? what equity market?

the P:E ratio is just that, a price to earnings ratio. As earnings increase the share price rises (with a bit of lag) which increaases the p:e ratio

brand new corporations or those with rapidly increasing earnings wil have low p:e ratios, stable old corporations worth lots with more or less constanty profits will have higher ones

crappy corporations and those making less and less money will have the highest p:es of all

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