Determinants of PE ratio

@dhanan (61)
India
December 22, 2006 11:16am CST
PE ratio = Market price per share / Earnings per share
2 responses
@harshadod (858)
• India
23 Dec 06
PE is a good indicator to begin with. There are many manipulations to PE. It can be historical PE, trailing PE, future PE etc. Also the PE for different industries is different. The market leader may have a different PE and a company in loss technically has no PE. PE is a initial guide. Many other indicators like PEG, RONW, Cash flow are also important.
@dhanan (61)
• India
28 Dec 06
Good reply. Thanks for ur comments.
@lsen06 (4998)
• India
29 Dec 06
correct.