Getting to grips with PERs

What good formula, prices - is - earnings ratio, or 1, the booklet is a simple, but we try to do the math in a shelter powerful.
in as unnecessary, and the financial terms of our hands - say, but Price - - Revenue ratio, or one, is an important concept to understand. This will help you to get more out of your investment and more from this publication. We started very simply. Suit, because that is exactly what the name suggests: price to earnings ratio of the shares. Rental property is a simple analogy. If you own a proprietary to earn dollars worth 200,000 US dollars a year, and its rent, rental yield of 5% (dollars divided by the 200,000 US dollars). The yield is calculated by dividing the value of the rent of properties (e) (pi). On the contrary, we
if, lotion jeukro divided by the blood, we will get some 20 times (200,000 US dollars divided $ 10000). 1 is therefore contrary to the rental yield. If the rental income is 15,000 US dollars in the same property, the lease rate of 7.5% and 1% of investors use altogether different comparison 13.
market expectations
you suit. For example, if five percent ownership of the revenue (20), b assets Revenue 7.5% (1, 13), and b are cheap assets, the same as all the others. But if the ownership is expected to grow faster than rents, real estate rent and b, and the equality of all the other not. In this case, in spite of ownership may be preferable to higher value danghapnida. It varies, of course, the rent grow.
turning how quickly the company to go to the suit. Pers compares the woolworths Coles (22) and (24) to see the face of this cheap (Coles), And, therefore, the market is expected to grow more (woolworths). This creates an intuitive sense given our record and woolies & 39; tracking prospects.
from formula, the two components is very simple: how to identify the unit, or & 39; prices & 39; & 39; and Blood & 39; earnings & 39; or & 39; ofthe & 39;. This is where to start doing a little more complicated, because there are different methods to calculate is how to calculate how many other income (and few). The rest of this article in the Intelligent
visit for investors to find out more information for a price earnings ratio of stocks to buy. michal gene



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