Price/Earnings Ratio

Price/Earnings Ratio or PER is a measure of value for a company’s shares.

Understanding Finance

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.

Understanding Finance

Helping clients understand what we do is key to building relationships. To explain some of the industry jargon that creeps into our world, we’ve pulled together a section of our site to help.


Related articles
Understanding Finance

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…

Understanding Finance

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).

Understanding Finance

Return on capital metrics are closely watched by managers and investors alike.