**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

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