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.
Related articles
Conceptually we have a reasonable understanding of inflation. As an economic term, inflation represents the general price rise of goods and services over a predetermined time.
Usually, your bank would pay interest on your savings accounts. Negative interest rates turn this around and mean customers have to pay banks to hold their savings.
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
If you like this article, follow us for more insights.
To receive more content like this subscribe today.