Price to Earning AnalysisPrice to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investor monitor on a daily basis. Holding a low PE stock is less risky because. When a company's profitability fall, it is likely that earnings will also go down..In other words, if you start from a lower position your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Price to Earning Over Time Pattern
About Price to EarningGenerally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
|Compare to competition|
Apple Price to Earning Assessment
Based on latest financial disclosure the price to earning indicator of Apple is roughly 14.67 times. This is 73.99% lower than that of the Technology sector, and significantly higher than that of Consumer Electronics industry, The Price to Earning for all stocks is 63.95% higher than the company.