A beginner's guide to p/e ratios - MoneyWeek Investment Tutorials

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  • čas přidán 23. 09. 2010
  • The p/e ratio is the main measure analysts use to determine a company's position relative to the rest of the market.
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Komentáře • 105

  • @sonnyobrien
    @sonnyobrien Před 6 lety +3

    I've watched so many videos explaining this principle. Yours was the most clear; no other teacher explained the MEANING of this principle. Thanks.

  • @quanin2190
    @quanin2190 Před 4 lety +1

    Sir you make the hard subjects in investment very easy and attractive to learn. You are giving best examples and you are a charismatic person.
    Thank you for spending your valuable time sharing your knowledge. Will pray to God you live a long healthy life and continue doing financial educational videos.

  • @mohammedomar4414
    @mohammedomar4414 Před 11 lety +2

    This guy is so excellent, he was made to teach people..:)

  • @KelleyGrl5758
    @KelleyGrl5758 Před 9 lety +1

    I'm new to the financial/investing sector; these videos help me understand these concepts with greater ease - thanks!

  • @mithunkartha
    @mithunkartha Před 8 lety +2

    Absolutely brilliant explanation! Simple is the way mate and thanks again!

  • @ahmaddakramanji8156
    @ahmaddakramanji8156 Před 10 lety +2

    Great Explanation ! Thank you

  • @piccolafamiglia3063
    @piccolafamiglia3063 Před 4 lety

    Thanks! the best explanation of p/e ratio I found on youtube for beginner's investors. Thanks a lot!

  • @Low_Rent
    @Low_Rent Před 11 lety

    Great video. Thanks. I understand more about the P/E ratio with your video than from many written articles.

  • @MoneyWeekVideos
    @MoneyWeekVideos Před 13 lety

    For anyone else who wants it that earnings per share video as background to this one is under "what is earnings per share" and listed about half way down the page. Tim.

  • @lfamador01
    @lfamador01 Před 12 lety

    Good video, basic, clear, and with good flow. Thank you

  • @karanputhran173
    @karanputhran173 Před 8 lety

    Very Simple and helpful . Good job

  • @armyaviation22
    @armyaviation22 Před 13 lety

    helped me a TON better than any class I have took

  • @bobbysidhu1087
    @bobbysidhu1087 Před 13 lety

    Thank you, this was very helpful.

  • @MoneyWeekVideos
    @MoneyWeekVideos Před 11 lety

    You can get a FTSE p/e from financial websites such as digitallook or hemscott and it is also published at the back of the FT in the markets section. Tim.

  • @mohammedomar4414
    @mohammedomar4414 Před 11 lety

    Wonderful explanation!

  • @CherokeeMist
    @CherokeeMist Před 11 lety

    Thank you. So much more helpful than textbook.

  • @tsp4343
    @tsp4343 Před 7 lety +15

    420p per share? isn't that a little... high?

  • @ArsalanGhani1
    @ArsalanGhani1 Před 13 lety +1

    thank you very very much for the fantastic explanation!

  • @514jamal
    @514jamal Před 12 lety

    very helpful and well-done!!!

  • @AmbassadorForMusic
    @AmbassadorForMusic Před 4 lety

    Brilliant. This video explains it well . I'm new to investing and found lots of people giving lectures on youtube saying high PE is good and low is Bad, but this is wrong. Looking at the formula there are still other factors to take into account.

  • @samreeve1508
    @samreeve1508 Před 4 lety

    Best video of P/E ratio on youtube!

  • @A07392115
    @A07392115 Před 11 lety

    ur an excellent teacher !!

  • @TheLover4you
    @TheLover4you Před 13 lety

    Thanks, very helpful

  • @imtiazshahed944
    @imtiazshahed944 Před 11 lety

    Very helpful. Tnx indeed

  • @sharadgana
    @sharadgana Před 11 lety

    Great Explanation .

  • @davidmthekidd
    @davidmthekidd Před 11 lety

    Thanks for the upload.

  • @vinothkumar5267
    @vinothkumar5267 Před 4 lety

    Very useful sir.....

  • @rapidachris
    @rapidachris Před 13 lety

    Good stuff. Thanks

  • @HETTIARACHCHIGE123
    @HETTIARACHCHIGE123 Před 13 lety

    Thank you very much..very nice

  • @CamShaft200
    @CamShaft200 Před 10 lety +1

    Brilliant video! Thanks very much for this :)

  • @Megatr0n12
    @Megatr0n12 Před 13 lety

    you're brilliant thank you very much

  • @blackamericanlesbianprofes4357

    Thank you so much for explaining in detail, very helpful in understanding. I am a mature (age 35 going on 36) BSc Accounting and Finance International (Black American) student.

  • @MrDonskister
    @MrDonskister Před 6 lety

    Thanks for the informations

  • @aminozuur
    @aminozuur Před 13 lety

    Perfect explenation ! Thanks !!!!

  • @zikruls
    @zikruls Před 12 lety

    Many thanks for the video :-) It was very informative.....

  • @fabiolous72
    @fabiolous72 Před 13 lety

    Thanks a lot - very clear info. congrats. looking forward to watching more interesting videos like this one. bye

  • @evmacsiulai
    @evmacsiulai Před 12 lety

    great vid

  • @Jesse-ly8nl
    @Jesse-ly8nl Před 5 lety

    A much better valuation metric is the EV/FCF ratio - a low P/E ratio company isn't necessarily cheap, because if their CAPEX and debt repayments are through the roof, we as shareholders never get paid - this effectively defeats the purpose of investing, which is to get more money out than we put in and not have it going to the bank!

  • @anirudhsrinivasa1192
    @anirudhsrinivasa1192 Před 7 lety

    hie ,
    i want to know why we use pe ratio and eps to calculate under value or overvalue of share.what is the essence of using only those two but not pb ratio

  • @rohandrummond6175
    @rohandrummond6175 Před 12 lety

    Every company has a PE. Sometimes it is just not stated. You need to look at it in the Annual Reports or financial statements.

  • @MINAJ24
    @MINAJ24 Před 9 lety

    Thanks for info great video. I was watching on then you said Boo com too. That went where Tesco did today :) Whoops!

  • @andreasdc2
    @andreasdc2 Před 6 lety +8

    Share price at £4.20. I see what you did there...

  • @rodctenis
    @rodctenis Před 12 lety

    Your videos are quite good. One question: why do you use always TESCO for the examples?

  • @karrotman
    @karrotman Před 11 lety +1

    Excellent job. Please attach a mic to your shirt next time. I was terrified that a pop up ad would come and blast my ears off.

  • @tachyon7777
    @tachyon7777 Před 13 lety

    Good

  • @PYSADA
    @PYSADA Před rokem

    Today i come to this am late too much but i will start

  • @GCYOSH
    @GCYOSH Před 11 lety

    Can anyone provide a link to the FTSE 100 P/E mentioned in the video. Is this figure readily available or does this have to be calculated manually?

  • @Trunks9Thousand
    @Trunks9Thousand Před 7 lety +3

    I have a question.
    Isn't it wrong to say you have to wait 14 years to get your money back? Can't you always sell the shares after 1 year (after earnings of 30p per share), for more money than you bought them? It seems like you would just get 100% ROI after 14 years?

    • @bigO231000
      @bigO231000 Před 6 lety +1

      Trunks9000 I think it is not the most correct way to convey the message. A more accurate account would be saying that there is a gain of 7.14% vs. 7.69% a year in respect to each company. So you still want you P/E low and your E/P a high percent.

  • @taittvi1
    @taittvi1 Před 7 lety +1

    Great video with good info but sound quality is so terrible.

  • @SladkaPritomnost
    @SladkaPritomnost Před 13 lety

    Couldn't the boo.com example with 100 p/e ratio be caused by high price per share I mean the bubble share price?

  • @victorgalway
    @victorgalway Před 11 lety

    Good work but I think you failed to also note that while you are hoping that earnings per share would grow, that share price would also increase as a result of growth in EPS as the stock becomes more attractive to more investors. do you agree?

  • @Hercules003
    @Hercules003 Před 12 lety

    @yakuzasama01 "P" stands for pence. 100 pence equals 1 GB Pound.

  • @vassiliosapostolopoulos7685

    well if you analyse P/E in similar companies thats quite good. But on the boo.com example you have to be very careful! P/E may be 100 and low and you wait the company to grow hard on earnings but what's the volatility? what's the risk? and bare in mind the online bubble! so never describe so vaguely these points it may totally the other way round!

  • @rohandrummond6175
    @rohandrummond6175 Před 12 lety

    You love Tesco.

  • @kingofwebguru
    @kingofwebguru Před 9 lety

    I don't hear clearly the main ideas about Boo.com with P/E of 100, what does it mean?

    • @Naxhus2
      @Naxhus2 Před 6 lety

      Essentially - if you were going to buy shares in Boo.com, you would be buying them on the expectation that earnings will increase due to factors outside the scope of the ratio. (For example, their innovative product or processes.)

  • @bastigarcia8739
    @bastigarcia8739 Před 8 lety

    Hello I hope you can answer my question. I have a homework as follow
    Common Stock, $3 par value, year 2 $300,000 Year 1 $300,000
    during year 2 totaled common stock $5,000. The market price of common stock at the end of year 2 was $0.97 per share
    so P/E earnings = 3/0.97 = 3,093
    Please if you can help me

  • @valdanowill
    @valdanowill Před 9 lety +23

    EXCELLENT, BUT GET A BETTER MIC.

  • @niranjanbandopaddhya8757

    Hi, have you wondered this program called the Intellitus Cash System? (do a google search). My father says it makes people plenty of cash.

  • @xaxxox
    @xaxxox Před 13 lety

    Loved your video :) But got few doubts in the examples you provided
    1) If P/E =14 times , you said it would take 14 years you to get your money back in other words. But one gets only dividends right? so shouldn't price per share be compared to dividends per share to find how many years will it take one to get his money back.
    2) is P/E = 100 for boo.com, how can EPS be high for boo.com ? if EPS is high then P/E should be lower .
    Got confused :( it would be nice if you could answer ;) Thanks.

  • @TheLiverpoolDelta
    @TheLiverpoolDelta Před 10 lety

    How low can a P/E be?? Northern Electric PLC (NTEA_p.L) is on a PE of 1.34 that has to be a mistake right???

    • @MrRealest247
      @MrRealest247 Před 10 lety

      A lot of things could cause such a low P/E. For instance, Northern Electric PLC probably has a very low demand resulting in a fall in stock price; hence a low P/E. Or Northern Electric PLC probably has very high profit margin resulting in a high EPS. Like I said there're lots of reasons that could result in such a low P/E.

    • @kianhowtan2429
      @kianhowtan2429 Před 10 lety

      I think it varies from industry to industry, as what MrRealest say, it could be due to a high EPS.
      In my opinion, a good way to see how "safe" a firm's P/E is, is to measure it against industry standards, or a few other competitors.This is to see the relative position of the firm vs others.

  • @cjafg5881
    @cjafg5881 Před 4 lety

    Wow Tesco have been hit hard since.

  • @jonasdauerbrenner6432

    4.20 for tesco. is it a bargain? i dont know.
    - me proceeding to buy it anyways because of "moon"

  • @moenga007
    @moenga007 Před 8 lety +2

    what does P mean? thanks!

    • @marinac9854
      @marinac9854 Před 6 lety

      aung moe san (twitter.com/moesan) price per share

  • @joy24242
    @joy24242 Před 8 lety +7

    Good stuff but terrible sound quality.

  • @FalconzRETREAT
    @FalconzRETREAT Před 12 lety

    You say the P/E ratio indicates how many years it takes to get your money back. What about your initial investment/shares. Lets take your tesco example, if you invest £10,000 after 14 years you make £10,000 but what about your initial investment of £10,000. So does the P/E ratio indicate how long it takes to double your money? Have I misunderstood earning per share?

  • @buzzkillington3354
    @buzzkillington3354 Před 3 lety

    How high can p/e ratios go.....tesla 1160 p/e ratio

  • @Baslium
    @Baslium Před 6 lety

    HE IS CUTE. I CAN SPEND WHOLE DAY WATCHING HIM SPEAK.

  • @bamanationalchamp15
    @bamanationalchamp15 Před 11 lety

    next time can you do one with dollars instead of pounds

  • @jasonkan9427
    @jasonkan9427 Před 6 lety

    4.2/30 is not 14 times... it's $0.14 meaning per share is undervalued as you're paying $0.14 for a share that earns $30...

  • @phily8020
    @phily8020 Před 13 lety

    Warren was wrong about one thing - you don't always have to check how much the guy who's teaching you something is earning....

  • @oO0E
    @oO0E Před 8 lety

    Is it just me or is the sound quality terrible? I can barely understand/hear him and I was very interested.

    • @marinac9854
      @marinac9854 Před 6 lety

      oO0E use earphones and turn it a bit up, helped me out greatly

  • @drsheikh
    @drsheikh Před 6 lety

    Calm disposition, but the narration goes a lot in circles. The presentation could be more terse and to the point.

  • @grod805
    @grod805 Před 13 lety

    This is lame.
    What is "30p"?
    How do you get that. That's why I came here and he can't explain that main thing. Do you get 4.2 and take away from something else? Does the p stand for percentage? I have so many questions

  • @chrisscott1547
    @chrisscott1547 Před 5 lety

    Sorry. Audio is so poor I quit after 10 seconds.

  • @Craig805
    @Craig805 Před 13 lety

    Can someone forward this to the White House? They desperately need to understand it.

  • @josephdavid9488
    @josephdavid9488 Před 6 lety

    Nice guy but totally doesnt understand P/E ratio, anyone with a real education will laugh at this guy no such thing as cheap and expensive in the market

  • @backwoodsterrorist
    @backwoodsterrorist Před 12 lety

    that carefully disheveled, product-enhanced hairstyle is less than flattering.