How to use P/E (PER) (Practice of stock fundamental analysis)

    Hello, In this DVD, we're going to cover some of the most frequently asked questions about fundamental analysis. We'll start with a very popular metric, the price-to-earnings ratio (TII ratio). Before you start, learn what PR is, how it's calculated, how it's used, and what to look for when using peers. Let's talk a little bit about fundamental analysis. Yes, the basics are the most important thing.

How to use P/E (PER)

(Practice of stock fundamental analysis)

    Remember, stock is essentially buying ownership of a company. So in fundamental analysis, we want to analyze everything related to the company. At the outset, I said that PR is a relationship. A ratio in mathematics is the comparison of two numbers by division. For example, shampoo ads sometimes say that 9 out of 10 Indonesian women choose Shampoo X. This means that the Apostle is 9 to 10 of her, or a 90% ratio. If there is only one number, we don't get the photo.

    Hello, for example, I have a net profit number for two companies or net profit. So one win is 10 million and the second win is 20 million. Let's see a lot. The funny thing is he might be bigger than 20 million, but if you know your income, let's say 50 million. If the first company has 400 million and the second company has 400 million, the profit margin is 25%. Perhaps the first companies are more attractive because they generate profits more efficiently. Using the same principle, it is also not possible to determine whether a stock price is high or low from the stock price alone.

    These metrics make it easy to make comparisons within a specific time period, such as comparisons between companies of different sizes or year-over-year for a company to grow if, as the name suggests, price vs. earnings is the price. will be Profit here equals price and profit refers to profit. Compare stock prices and company earnings. The smaller the comparative number, the cheaper the stock price, and the first three components of net income for the year, the number of shares outstanding second, and the stock price third, the IPS or Earnings Per Share first. Or you will need net income. Per share to calculate.

    Equity means net divided by number of shares outstanding, and equities equals stock price divided by IPS, but we intentionally show the formula of earnings divided by number of shares outstanding. Because this is important or conceptual. please refer to. In addition, we will immediately attempt hand calculations using the example of telecommunications companies Telkom and XL. All the components needed to calculate the price, including the PR number from the iPod, show that Telekom's stock price is 3970 and Excel is 3150 in 2019. Does that mean XL's stock price is high?

    However, hand-calculating 18.6 trillion in revenue and 99.1 billion shares outstanding in 2019, the stock price is 3970 ÷ 0.6 trillion revenue ÷ 99.1 billion shares outstanding, with a PR of 21. , then XLs 3150 y 2019 with a stock price of 712.50 billion, with 10.7 billion samples outstanding. So the PR for 2019 is 47.

    Smaller is cheaper Competitor Telkom d2019 is smaller than XL, so even though Telkom's stock is higher than XL in use, if we look at Telekom's earnings, we conclude that the stock is worth less than XL. of PRs were calculated in the past year.

    What approximately the modern-day 12 months, the tale is in 2020, we have not recognize what the internet earnings is on the quit of the 12 months so we ought to estimate how a good deal earnings on the quit of the second one as an example we're now withinside the 2d sector or sector there are typically approaches to calculate in step with there's a stay Enno variety and the TTM variety this is greater frequently used is the 0 effort, that means that the annualized is the annualized internet earnings with the palms divided equally, if as an example, one variety is 5 billion, it manner that it is going to be assumed that every corruptor is likewise 5 billion due to the fact one sauna may be korter so five instances four and the 12 months care earnings is expected at 20000000000 we use once more instance XL sure gross earnings via way of means of one and gross 2 of them already out in 12 months there are 4 korter divided via way of means of sector that has been jogging So then elevated via way of means of a complete earnings of 2kor the end result is three.four trillion, then the earnings parent on the quit of this 12 months we input the chromosphere itself is silver, the 12 months is expected to be round six spherules, that is what we see maximum frequently, as an example withinside the that means of the magic i-telecellsmartphone and the second one stockbit is factor M or Three, because of this that altman's The closing 365 days if this is lots now no longer a 12 months however will use earnings for the closing 365 days with the identical instance XL we recognize that the kor3a region has now no longer pop out with factor M the variety can be packed with closing 12 months's earnings so it's far assumed that korter three 2020 earnings = gross three-2019 manner that in case you use this technique the earnings is 2.1 trillion and pr- it turns into 10 platforming pernya the use of TTM as an example stockbit and in tradingview however occasionally among ceilings may be barely extraordinary the effects of the calculation of the ratio may be due to the fact the internet earnings or the variety of exquisite stocks are rounded up.

    Let's calculate the price of Telekom stock when the PR is 10. The formula is just to invert the price = PR divided by net profit divided by the number of shares outstanding or Ferdi multiplied by IPS means 188 has been mined, so telecom stocks The price of is 1880 with a PR of 10, so we know what Perum is and how it is calculated. In long-term PR investing, we can avoid buying stocks when the stock price is high, so if we're looking to execute as many statements as we want, we can buy stocks right away. , there is no exact number. Based on Benjamin Graham's Investor Intelligence classic book, he uses it to determine how much his PR is cheap if he finds recommendations for under-15s and his under-10s. So while these numbers can be used as a starting point of reference, we rarely find them later. This is because it reflects and is highly rated by investors.

    Another commonly used method is to compare a company's rempers to other companies in the same industry or industry. For example, you can compare p. Deepen the profiles of companies in the Consumer Goods sector. For example, similar return on equity in the same industry. For example, it shows that blue-chip companies in relatively stable industries such as consumer PR are higher. Profitable companies in the mining sector.

    For example, the common PR is obviously low. So we can not use one elevate for all forms of businesses. Finally, we also can see from the peer records of a employer while a terrific employer meets an monetary cycle this is happening routinely. and different businesses we will Try to look how the editorial body of workers was once while this employer had problems through searching at datapine 5-10 years in the past then Usually we use the monetary disaster as a second to shop for the shares, peer is the perfect ratio to calculate and clean to apprehend So t so it reasons those who are simply beginning to attest to the level so there are some matters we should take note of while the use of peer the primary aspect to apprehend is that Perry isn't a magic range that shows that a inventory is routinely undervalued too withinside the destiny its rate will cross up plenty so one can cross wrong apprehend through concluding that if the share is low, it manner true, such a lot of those who meet a employer with a low rate at once purchase it after which they're harassed why each yr it continues happening despite the fact that step one in making an investment is we ought to decide first that a employer is of true excellent and could keep to grow.

    After making sure the company is worthy of itself by doing a more comprehensive analysis to check the quality of management, consistent earnings, regular dividends, growth, etc., use peers to price is correct. No. Oh, when you come across a company that has been consistently underperforming for years, you have to dig deeper lest the market appreciate it.In the second future, using net income as a component of the calculation So there are some weaknesses per proportional. For example, it is not possible to calculate the loss-making company in the case of negative profit. Companies that regularly make new highs and lows, or whose earnings are driven by commodity prices, are difficult and inappropriate to analyze at a third peer.

    I in brief defined approximately Olis' function in which IPS become fashioned the usage of annualized earnings and PRTM which used earnings from final year. From right here, it could be visible that the numbers may be inaccurate, for instance Back to the usage of the XL instance Why is Excel's PR in 2020 so low as though Excel could be very reasonably-priced if we appearance extra carefully at the primary nook there may be a surge in earnings right here and it seems that that is from Tower sales, now no longer from everyday working earnings, so for anomalies like this we need to manually accurate them with lessen it plenty due to the fact this doesn't mirror the income on the way to be regular after disposing of the earnings from the sale of tawur VR XL perhaps withinside the thirty fourth variety and this makes extra feel now no longer as reasonably-priced as proven in F stocks this hassle additionally takes place in PR that's TTM or trillion three hundred and sixty five days for instance with effect of its 16, we already realize that there are organizations which have dropped plenty and feature even long gone down for the reason that first zone and the second one zone of 2020 So it is now no longer correct if we use the phrases backorder three and four with earnings from 2019 The factor is we can not continually use the Perdi range withinside the utility our inventory, so attempt to examine it first so that you do not misjudge the fee one agency and prefer it or now no longer there can be a bit guide calculation the usage of numbers which are in the direction of the conclusion, firstly, the peer is the ratio in essential evaluation to peer the inventory fee to the internet income generated with the aid of using the agency.

    You can see if the company's stock price is low or high. Third, we must always prioritize the quality of the company, because cheap does not mean good. Then see if it's cheap, and if the company is good and cheap, buy the 4th one. There are still many things to do. If you use PR, you can't analyze all stocks using PR as a magic number. Therefore, do a more comprehensive fundamental analysis to avoid falling into the trap. I will write another article about stocks. Please suggest the following topics you would like to see.

    There are also many articles on other financial topics such as deposits and mutual funds that I have put together in a few playlists. Subscribe to like it, then learn more. Thank you

Location:

Berbagi :