Intercession Investing Main Page

Excellent links to understanding P/E Ratio

Price to Earnings Link 1


Price to Earnings Link 2


This site below is PRETTY good in playing around with this and the other formulas. If it is too complicated then go to the sites above.

http://moneychimp.com/articles/valuation/pe_ratio.htm


Definitions

http://www.investorwords.com/

(For this site just type in the phrase you are looking for and it defines it for you. But, if you do not understand the definition, do not use it.)

The simplest definition of the P/E ratio is the mathematical formula: P/E = Price divided by Earnings.

This second definition relates to the P/E ratio as a measurement of the cost of earnings: P/E = How many dollars you must pay to buy one dollar’s worth of a company’s earnings.

This final definition relates the P/E ratio to the time use of money: P/E = How many years in advance you are paying for this year’s earnings.

Stocks are located in different exchanges, no problem - I have the main ones below. Click on one, type in your ticker symbol, start looking for the P/E ratio as you scroll down the page. If it is not there come back to this page and click on the other one.


New York Stock Exchange
http://www.nyse.com/interface/html/SymbolLookup.html

NASDAQ
http://www.nasdaq.com/quotes/stock-quotes.aspx