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 or PER is a measure of value for a company’s shares.
The slowing global macro backdrop is feeding through to the performance of a range of businesses.
The legendary investor and ‘Sage of Omaha’, Warren Buffet, CEO/Chairman of Berkshire Hathaway wrote, in 1986, about the important concept of “owner earnings”.
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…
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