Hi
My three criterion are now, if the share is blue-chip or not, the companies PE and its comparison to the S&P/ASX200.
Regarding the companies I have compared it to a rival companies PE, I said that it is good that its PE is higher than the other company but it is still a bad reflection on the company as the PE is only 0.09. (Would that be 9cents?)
Is that correct?
13 years ago
13 years ago
Qantas Airways on the ASX
My working out is below:
Qantas Price Earnings Ratio =
(Market Value per share)/(Earnings per share (EPS))
2.08/(Earnings per share (EPS))
Qantas EPS =
(Company net income-dividends)/(Number of shares available)
(417,000,000-0)/19,000,000
$21.94
Qantas Price Earnings Ratio =
2.08/21.94
$0.09
13 years ago
That came out badly
Retype
PE = Market value per share/EPS
EPS = net income-dividends/no of shares available
EPS = 417000000-0/19000000
EPS = 21.94
PE = 2.08/21.94
PE = 0.09
13 years ago
I don't know what you did, but the P/E ratio is about 16 for Qantas. (That's within the range of most stocks.)
Most financial sites show P/E.
Price: 2.08
EPS: 0.13
2.08/0.13 = 16
http://finance.yahoo.com/q;_ylt=AuuHd2GrepknzNvwLtScYYTxVax_;_ylu=X3oDMTFiMDA2NWVkBHBvcwMxMgRzZWMDeWZpU3ltYm9sTG9va3VwUmVzdWx0cwRzbGsDcWFuYXg-?s=QAN.AX
13 years ago
High P/E's (30 +) usually means that the price of the stock is pretty high. Investors believe that the stock's price will go a lot higher.
Some industries (utilities) tend to have P/E's under 10, but it's unusual for other companies to have such low PEs.
13 years ago
Thank-you for all your help so far.
How did you find the EPS? I think I messed up there..
13 years ago
Oh, I see, you got it off the website. I'm just wondering how I got the EPS so wrong.
13 years ago
I got it from the website, but I also divided the latest price by the year's earnings per share. That information is also on the website.
You're welcome.
13 years ago
Thank-you for all your help XD
13 years ago