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Pastimes : Georgia Bard's Corner -- Ignore unavailable to you. Want to Upgrade?

To: Rob D. who wrote (1020)	4/30/1998 6:27:00 PM
From: Andreas	Read Replies (1) \| Respond to of 9440

Yes, P/E ratio is price ove earnings. For instant if a stock cost $10/share and the earnings for that year is lets say $1 than the P/E ratio is 10 (price divided by earnings) 10 divided by 1. Now I like to look at the average P/E ratio for a company's industry to get a somewhat idea what this company's P/E ratio will be.

To: Rob D. who wrote (1020)	4/30/1998 6:31:00 PM
From: Ga Bard	Read Replies (3) \| Respond to of 9440

price-earnings ratio (P/E) = A common stock analysis statistic in which the current price of a stock is divided by the current (or sometimes the projected) earnings per share of the issuing firm. As a rule, a relatively high price-earnings ratio is an indication that investors feel the firm's earnings are likely to grow. Price-earnings ratios vary significantly among companies, among industries, and over time. One of the important influences on this ratio is long-term interest rates. In general, relatively high rates result in low price-earnings ratios; low interest rates result in high price-earnings ratios. The reduction in interest rates was a prime factor in the bull market beginning in 1982 as investors valued firms' earnings at high multiples with the resulting rise in stock prices. earnings-price ratio (E/P) = The rate at which investors are capitalizing a firm's expected earnings in the coming period. This ratio is calculated by dividing the current market price of the stock into projected earnings per share. A relatively low E/P ratio anticipates higher-than-average growth in earnings. Earnings-price ratio is the inverse of the price-earnings ratio. market capitalization = The total value of all of a firm's outstanding shares, calculated by multiplying the market price per share times the total number of shares outstanding. For example, at a current price of $.50 for each of its 29 million shares of outstanding stock, MIDL has a market capitalization of $.50 times 29 million, or $14,500,000.00. Typically the I use 10 times earings per share. ANother words say BLHG has a .82 EPS fully diluted then .82 x 10 equals $8.42 share price which the current standings can support this level. Hope this helps GB