fbpx

Price / earnings ratio (P / E) over 5 years - key figures simply explained

The average price-earnings ratio (P / E) over 5 years expresses how the current price of the share and the average annual profit per share relate to one another over 5 years.
Reading time: <1 minute

TransparentShare - KGV over 5 years

Definition: average PER over 5 years

The average price-earnings ratio (P / E) over 5 years expresses how the current price of the share and the average annual profit per share relate to one another over 5 years. The reported figures from the past 3 years as well as the expected figures for the current and the next year are used.



Significance for the evaluation

The P / E ratio is an important key figure for assessing the earning power and development of a company compared to others. Using the 5-year average helps even out fluctuations.

Calculation

P / E ratio over 5 years = share price / ((profit 3 years ago + profit 2 years ago + profit 1 year ago + profit current year + expected profit next year) / 5))

Rating

+1 point: PER over 5 years <12
0 points: PER over 5 years between 12 and 16
-1 point: PER over 5 years> 16 or <0

Example

Lufthansa (3.2.2017): PER over 5 years = 5.59 -> +1 point

Price / earnings ratio (P / E) over 5 years - key figures simply explained 1

Share post

Share on facebook
Share on twitter
Share on linkedin
Share on xing
Share on whatsapp
Share on email

The last posts

Stock split explained simply - example: Apple

Stock split explained simply - example: Apple

In a stock split, existing shares are converted into a larger number of new shares with a lower ...
NEW: S&P 500 and EURO STOXX 50 stocks

NEW: S&P 500 and EURO STOXX 50 stocks

With immediate effect, S&P 500 and EURO STOXX 50 shares are available to all premium users of ...
What is a wikifolio? Wikifolio simply explained

What is a wikifolio? Wikifolio simply explained

A wikifolio is a virtual sample portfolio in which stocks, mutual funds, ETFs and certificates are bought and ...

Simply find the cheapest depot!

Compare now without obligation and without specifying an email address and find the cheapest depot.

OnVista Bank - The new trading freedom

Test for 14 days

Ready to go in 30 seconds

* Without specifying a credit card

en_US
de_DE en_US