Assignment First

本篇澳洲代写被抓-市盈率或公司的价格比率讲了市盈率或公司的价格比率被用来衡量公司的价值。这个比率倾向于衡量当前股价相对于每股收益的比率。同样的计算方法是每股市场价值/每股收益。这个比率指的是一个人在公司投资的金额,以赚取1美元的利润。这就是为什么这个比率也被认为是倍数的原因;它向投资者展示了很多,投资者愿意支付,以赚取1美元的利润的公司。一个公司的市盈率越高,说明投资者对公司未来发展的预期越高,而一个公司的市盈率越低,说明投资者对公司未来发展的预期越高。本篇澳洲代写被抓文章由澳洲第一论文 Assignment First辅导网整理,供大家参考阅读。

P/E ratio or the price ratio company of the firm is used as a measure to value the firm. The ratio tends to measure the current price of the share relative to the earnings per share. The same is calculated by Market value Per Share/ Earning Per share. The ratio means the amount of investment an individual has to make in the firm so as to earn 1 dollar of earning of the firm. This is the reason why this ratio is also regarded as a multiple; as it showcases to the investor show much are the investors willing to pay so as to earn 1 dollar earning of the firm. A higher price earnings ratio of a firm signifies that the investors in the firm are expecting the firm to grow rapidly in the coming future as compared to a firm which has a low price earnings ratio. A firm with a low price earnings ratio denotes that the firm is either undervalued in the current market scenario or it is doing very good as compared to its historical performance.

In the year 2011, the price earnings ratio of Apple accounted to 14.6 and in the subsequent years it was over and above 10 (in the year 2012 P/E ratio was 12.1, in the year 2013 it accounted to 14.1, in the year 2014 it was about 17.1 and lastly in the year 2015 it was 11.4).A consistent P/E ratio of above 10 in the past 5 years denotes that the investors were willing to pay more than $10 to contribute to $1 earnings of the firm. A consistent P/E ratio of a firm denotes that the investors have faith in the firm’s future. This is because of the fact that the investors are willing to pay as much as 10 times to the firm to be a part of $1 earnings.

However, there are some important points which an investor must take into consideration while considering P/E ratio as a criteria for making an investment in the firm. Some of these are that the operations of different firms might vary from industry to industry or within the industry as well. Thus, while comparing P/E ratio of two different firms might not be as useful as expected. It must also be noted that the debt of the firm tends to impact both the earnings and also the current market price of the firm (Bettis, 1995). It is because of this that the leverage of the firm could have a huge impact on the P/E ratio. It implies that a firm which has a huge debt would definitely have a lower P/E ratio, but if a business is doing well then a huge debt might not pose an issue.