P/E 10 Ratio

Filed Under » , , ,
Dictionary Says

Definition of 'P/E 10 Ratio'

The price-to-earnings (P/E) ratio is the valuation ratio of a company's market value per share divided by the company's earnings per share. A P/E ratio of 10 means that the company's stock price is trading at 10 times the company's earnings per share.
Investopedia Says

Investopedia explains 'P/E 10 Ratio'

A P/E ratio of 10 is a rather conservative ratio in comparison to the stock market's historical valuations. This low P/E ratio could be a result of a slow-growing company being in a slow-growing industry, like the automobile industry. At times, however, even faster growing companies can have low P/E ratios. This may occur during a recession when investors' confidence is low regarding future prospects for the economy.

Articles Of Interest

  1.

    10 Tips For The Successful Long-Term Investor

    These guiding principles will help you avoid common folly during the decision-making process.

  2. The P/E Ratio: A Good Market-Timing Indicator

    Check out the returns this newer technical analysis tool would've yielded over the period from 1920 to 2003.

  3. Understanding The P/E Ratio

    Learn what the price/earnings ratio really means and how you should use it to value companies.

  4. Weighted Average Cost Of Capital (WACC)

    Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality

  5. Understanding And Playing The Dow Jones Industrial Average

    Learn strategies for investing in this price-weighted index and how to interpret its movements.

  6. Seadrill Still In Motion, But Delivering Better Utilization And Dividends

    Still an aggressively-run company, Seadrill offers highly leveraged exposure to the growing offshore drilling market.

  7. AstraZeneca Looks To Fish Oil To Round Out Its Cardio Portfolio

    AstraZeneca validates the purified fish oil concept, but not at an especially high price.

  8. Cost Discipline Driving The Story At PNC Financial

    If PNC can execute on it cost-cutting initiatves, the value creation could be meaningful

  9. Guide to Pairs Trading

    Pairs traders wait for weakness in the correlation, and then go long on the under-performer while simultaneously going short on the over-performer, closing the positions as the relationship returns ...

  10. Lenovo Still Far From Getting Its Due

    Lenovo's leading share in emerging market IT seems undervalued.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  2. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  3. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  4. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  5. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  6. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=188f4af13fd521c4028a5662f9c42c28