- Thread starter harmads
- Start date

Check out the following link

http://www.investopedia.com/articles/analyst/043002.asp

Hi all

We all hear about P/E ratios and EPS etc being talked about. But I would appreciate if an expert on the subject would tell us what is a good P/E ratio to consider. How do you differentiate by studying P/E ratios between a good share and a not so good one.

Regards

We all hear about P/E ratios and EPS etc being talked about. But I would appreciate if an expert on the subject would tell us what is a good P/E ratio to consider. How do you differentiate by studying P/E ratios between a good share and a not so good one.

Regards

PE ratios are also related to growth rate of company sometimes measured by PEG

anyway the good old marwari notion teji or mandi is all you need. it is all round you. if you are looking to buy as it seems from your query waiting is also a part of the game.

regards

m

PE RATIO = Market Price Per Share / Earnings Per Share

Market Price Per Share = Market Cap (Equity ) / Number of Outstanding Shares

EPS = Profit After Tax / Number of Shares Outstanding

so PE = Equity / PAT

this will give the number of years it will take an investor to break even.

I personally do not rely on PE ratios or base any decision looking at them

In my opinion PE ratios should only be looked at when two companies are getting into either a merger or an acquisition.

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