The purpose of the study is to examine the reliability of beta as a measure of risk by predicting the stock price movement during negative price swings and to test the predictive power of a price-earnings ratio
as a measure of risk during the same period.
The price-earnings ratio
is also related to the anticipated growth in the earnings of the company.
Some growth investors prefer to see a price-earnings ratio
that is lower than the three-year profit growth rate for a stock.
65 each, representing a discount of up to 69 per cent and a price-earnings ratio
of a paltry four times next year's earnings.
Investment philosophy: ``Although we believe that good earnings, stock rankings, price-earnings ratio
and management are important, money goes where money is.
8 average price-earnings ratio
for the Standard and Poor's 500 stock index.
We therefore are lowering our price-earnings ratio
expectation to a 5.
While listed stocks trade, in general, at about 17 to 20 times earnings, Herr said, the price-earnings ratio
for the unlisted stocks in which he makes markets is likely to be five to eight times earnings.
On a forward price-earnings ratio
for 2005, that would mean IGT would be trading at 19.
The company is acquired at a price-earnings ratio
of 5 and price-sales ratio of 1.
The enhanced InstantBroker service also features the first wireless intra-day stock screener, enabling customers to analyze stocks based on financial parameters, such as trading range, price-earnings ratio
and market capitalization.
analysts' consensus projected price-earnings ratio
for next fiscal