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Copyright © Provident Financial Management Services Ltd 2008. Written credit quotations are available on request. Available to UK residents aged 18* and over. Applications subject to acceptance. Calls may be recorded.
Provident Personal Credit Ltd. Registered Office: Colonnade, Sunbridge Road, Bradford BD1 2LQ. Registered Number 146091 England.

Online payday loans are marketed through e-mail, online search, paid ads, and referrals. Typically, a consumer fills out an online application form or faxes a completed application that requests personal information, bank account numbers, Social Security number and employer information. Borrowers fax copies of a check, a recent bank statement, and signed paperwork. The loan is direct-deposited into the consumer's checking account and loan payment or the finance charge is electronically withdrawn on the borrower's next payday.

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The stock price-earnings ratio refers to what What is the importance Money Tips

Data:2009-12-12 2:34

Category: Money tips Release Date: 2006-10-07

Price-earnings ratio that investors must grasp a key financial indicators, also known as PE ratio is the stock price divided by the earnings per share ratio. Price-earnings ratio reflects the earnings per share remains unchanged, when the dividend payout ratio of 100% and the income is not reinvest dividends under the conditions of our investment over many years can be fully recovered through dividends. Under normal circumstances, a lower stock price-earnings ratio, market price relative to the profitability of the stock lower, indicating that the shorter the payback period, the less investment risk, the greater the investment value of stocks; the other hand is the opposite conclusion.


Price-earnings ratio, there are two methods of calculation. First, stock prices in the past year, earnings per share ratio. Second, with this year's earnings per share stock price ratio. The former more than the annual earnings per share is calculated on the standard, it does not reflect the stock due to current and future earnings per share of equity investment value changes resulting change in this situation, and thus has a certain lag. Buy stocks is to buy the future, so the year level of profitability of listed companies with a great reference value, the second price-earnings ratio that reflects the realities of the investment value of the stock. Therefore, how to accurately estimate the earnings per share listed companies, the level of the year, has become the key to grasp the value of stock investments. Earnings per share of listed companies the level of the year not only with the level of corporate earnings, but also of changes in equity or otherwise and businesses also have a close relationship. The listed company's share capital expansion, Tan Dao earnings per share would be reduced inside the enterprise will be a corresponding increase in the price-earnings ratio. Therefore, in a listed company issuing new shares, bonus, provident funds transfer and allotment Song Honggu, you must promptly diluted earnings per share to calculate the correct value of the price-earnings ratio of guiding.

With one-year bank deposit rates are 7.47% for the basis, we can calculate the risk-free price-earnings ratio of 13.39 times (1 รท 7.47%), below which the price-earnings ratio of stocks to buy and little risk. So it is not price-earnings ratio the lower the better? From abroad, mature market, the price-earnings ratio of listed companies have such a broad distribution of characteristics: robust type, slow growth-oriented enterprises with low price-earnings ratio; growth and strong corporate earnings ratio is high; cycle of ups and downs of the price-earnings ratio enterprises in between. There is also a low price-earnings ratio of large companies, small companies higher price-earnings ratio. So the distribution of earnings, including the relative change in the company's future performance expectations. Because the high-growth and the cycle of ups and downs the company's future performance are expected to increase significantly, so such companies have relatively higher price-earnings ratio, while the higher price-earnings ratio does not fully indicate a higher risk.

Some have already entered a mature company, in the company, while maintaining a sound, the future is difficult to have experienced significant growth, so price-earnings ratio is not high, but also more stable, if the higher price-earnings ratio of such companies, then it means that risks are too high . Judging from the current characteristics of Shanghai and Shenzhen listed companies look to high-growth high-tech stocks on behalf of the concept of real estate stocks on behalf of ups and downs of business cycles, while most other companies, especially those of large companies sunset industry is essentially a solid-type or slow growth-oriented enterprises. Therefore, taking into account the changes in the domestic macroeconomic situation, some high-tech, real estate stocks even if the price-earnings ratio has been higher, several other targets are also not ideal, is the same as may be a company with strong growth potential, its high price-earnings ratio and can not be afraid.

Therefore, we can not just buy stocks high and low price-earnings ratio, in addition to concern about low price-earnings ratio of less risky stocks, we must also explore the potential from the high price-earnings ratio of stocks in order to obtain a high rate of return.