PE ratio: related pages

Historical PE

A PE ratio based on published accounts rather than forecast data.

Prospective PE

Share price ÷ forecast EPS for the current financial year.

Long term PE ratio

A PE ratio calculated using average earnings over several years

Sector PE

The PE ratio of an entire market. Total market cap ÷total net profits.

Relative PE

A company's PE ratio divided by the sector PE or the market PE.

PEG

PE ratio divided percentage annual growth in earnings per share.

EV/EBITDA

Enterprise value divided by earnings before interest tax depreciation and amortisation.

EV/sales

Enterprise value ÷ sales.

Price/cashflow

Share price ÷ (cash flow ÷ no of shares in issue).

Price/sales

market cap ÷ sales.

NAV

The total value of a company’s assets less the total value of its liabilities, divided by the number of shares in issue.

Sum of parts valuation

The valuation of a company by separately valuing different parts of it so different valuation methods or ratios can be applied to disparate businesses.

DCF valuation

The calculation of the present value of a stream of future cash flows taking into account both risk and the time expected to elapse before the cash is received.

Valuation ratios

A measure of how expensive a share is obtained by dividing a measure of cost against a measure of value or profits.