Question
Here are some terms with reference to stocks when determining the value: Low P/E - Price-to-earnings ratios are in the bottom third of the S&P
Here are some terms with reference to stocks when determining the value:
Low P/E - Price-to-earnings ratios are in the bottom third of the S&P 500.To calculate P/E you can use past earning or an analyst's prediction.
High P/E - Price-to-earnings ratio is in the top third of the S&P 500.These "richly" priced shares are referred as "growth" stocks, but investors pay higher premiums.
Low PEG Ratio - P/E ratio divided by the expected growth rate is in the bottom third of the S&P.You should be willing to paying a higher P/E for a company with expanding profits.
High Return on Equity - High ROE suggest a firm can keep profits growing if it reinvests earning in the business.
Companies like Costco show a high P/E but isn't a standout on ROE or growth rate.Apple is in a great spot but shows a low-PEG ratio and high ROE.
Any thoughts on a company that has it all as listed above?
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