Introduction to the Price-to-Earnings Ratio

[joelebeau811]

stream of consciousness dude

[bluemew123]

o-o'....i...eUe LOVE MATH NOW U MADE ME LOVE MATH CONGRATZ

[luiscorralangulo]

thank you

[MrBigEnchilada]

if you're investing don't just look at PE because there are numerous types of PE ratios where companies use different net income and profit figures so they're not all talking about the same thing. If the PE ratio is negative and the company is not a startup, then you have to wonder why isn't the ceo fired yet.

[chocoboblue99]

Yeah, great video! That 10% earning in buying a stock and opening up a saving account bank for 2% is a great example.

I'll probably go with the 2%. I know from buying and selling stock with the transactions fees will just get me to negative like I did before. lol

[dominoes2020]

Thank you so much. Your explanations are so clear.

[akshayzz1]

You're the best teacher EVER on the internet.

[freethoughtmusic]

Thanks for clearing up something I didn't fully understand.

[sutanpipi]

thank you for this video, i'm not clear about number of share in this video. Is that the total share or only number share that sold to public, total shares belong to public.

[shadowsofdream]

i really appreciate the time you invested to make this video, very informative

[Devourer09]

WINC ;D

[baighn92]

great video, very helpful

[tennis12456]

Thank you for this video, i'm fairly new cto the stock market and trying to learn as much as possible. You really make iteasy to understand and you really know what you're talking about

[silanath]

Hey, thanks for the nice stuff. Its really good video even for a beginners.

[Andersxman]

Hi Sal, could I ask you a question? If a company has a negative price to book value, what does that mean? It seems really strange to me that that it possible - why would you pay less for the share than what the assets minus the liabilities are actually worth?

[Andersxman]

Sorry, I meant: a price to book below 1. I just read that there is a Japanese small cap index that is trading at a price to book of 0,77 - that seems odd to me! A whole index trading at below the book value? What would you read in to this example?

[redplastic]

I know you're doing so many videos in different topics, but please do more under valuation/investing. Would it be possible for you to do lessons on technical/chart analysis? I don't know if this topic is on the borderline of what your mission for the academy is, but I'm hoping it's a legitimate request and I know you'll be able to make them in a way that adheres to the educational standard - which is what I would want as a student.

Thank you, once again!

[redplastic]

Loved this lesson! Thank you.

I'm in the beginning stages of learning these things in investing and though I knew all the terms you've touched upon in this lesson, I wasn't able to connect all of them in the way that you have helped me to in seeing how they all fit together. This is something that even internet research wasn't able to get through to me and it just shows the importance of having a great teacher.

[sielecas]

First off let me start by saying these videos are awesome!

I have a question on P/E ratios. How do you interpret a company with a negative P/E , basically what does that mean.

[dobojgirl]

@sielecas, if the P/E ratio is negative, it means that the company's earnings (i.e. Net Income) is negative (think about this, the price component of the P/E ratio can't be negative because a company's stock price can't be negative, it can be 0 or positive). This is why, for some companies, it is not useful to look at P/E ratios. In this case, you could analyze the company based on other ratios such as Enterprise Value divided by Operating Earnings (or EBIT) ratio and others...

[vinniepaz730]

amazing Sal. i love your way of explaining things. most people doing investment management are busy pulling in billions for their firms, but you take the time out to educate people like us and inspire us. thank you .

[13WhiteFang37]

thanks alot!

[shootshoot]

Hey, thanks mate.

You even encourage me to teach others.