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

The price / earnings ratio describes the relationship between the current share price and the annual earnings per share.
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TransparentShare - price / earnings ratio

Definition of price / earnings ratio (P / E)

Das KGV bezeichnet das Verhältnis zwischen dem aktuellen Aktienkurs und dem Jahresgewinn pro Aktie. Es bezeichnet wie viele Jahre es dauert bis ein Unternehmen den Wert seiner Aktien als Gewinn erwirtschaftet hat.

 

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. The lower the P / E ratio of a share, the cheaper the share appears. Low P / E stocks have historically generated higher returns.

Calculation

Price earnings ratio = price of shares / earnings per share

Rating

+1 point: current PER <12
0 points: current PER between 12 and 16
-1 point: current PER> 16 or <0

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