Put simply, it represents the number of years it will take the company to earn the current share price at the current level of net profit, or PAT.
Price/Earnings Ratio
Price/Earnings Ratio or PER is a measure of value for a company’s shares.
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A question I am frequently asked is how do we analyse stocks? How much emphasis do we place on valuation? And how much do we place on company analysis, in terms of assessing quality and growth…
A core method we, as equity analysts, use to calculate and estimate the present value of the companies we invest into on behalf of clients is the discounted cash flow model (DCF).
Return on capital metrics are closely watched by managers and investors alike.
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