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Price Earnings Ratio

1-12 out of 23 results.

US shares: Ambitious multiples on ambitious EPS forecasts

Here's a detailed look at how current valuations and profit forecasts for the S&P 500 stack up versus history. The answer? Both seem excessive, making the market vulnerable to a correction or worse.

Searching for value in tech stocks

Just because a stock is cheap doesn't necessarily make it good value. This uses case studies in the tech sector to help identify when stocks trading on 30x earnings may be inexpensive and when others on 10x may be value traps.

Which asset classes are a bargain now?

Many assets have enjoyed a positive year, leaving some of them looking pricey. Here we compare valuations of cash, bonds, stocks, and property, and suggest where investors may be able to find opportunities.

This cornerstone of stock market valuation has been left behind

For decades, cyclically adjusted P/E ratios have been a common and widely accepted gauge of market valuation. But as the financial landscape continues to evolve, so too must our tools for understanding it.

Have value investors been hindered by this quirk of accounting?

Investments in intangible assets are as crucial to many companies as investments in capital equipment. The different accounting treatment of these investments, however, weighs on reported earnings and could render ratios like P/E less useful for investors.

Bull and bear case for Australian equities for FY25

ASX market bulls point to corporate balance sheets and earnings, while bears highlight company valuations and persistently higher inflation. It's best to ignore short-term noise and focus on investing in quality companies.

Finding single-digit PE stocks in an overvalued market

For one Commonwealth Bank worth ~$200 billion, you can buy three of Europe's leading banks with much larger addressable markets. This is just one example of the extreme valuation divergences across global stock markets.

Is ResMed a trap or an opportunity?

ASX blue-chip ResMed has been hammered due to concerns that new obesity drugs will reduce demand for its product. What are these drugs, how effective are they and what impact could they have on the sleep apnoea market?

Market narratives are seductive and dangerous

Human beings are storytelling animals yet it’s the job of investors to separate truth from fiction. And the truth lies in numbers, the company earnings and the multiples attached to those earnings.

Why stock prices are a distraction

Stock prices are like email: distraction machines. With email, it distracts people from getting work done efficiently, while with stock prices, they distract investors from what really matters: the businesses underlying them.

Investment opportunities in the global energy crunch

Investment in the energy sector has dropped significantly but demand continues to rise. Higher prices normally trigger more spending and increased supply. If this is not the case, it creates investment opportunities.

Is the speculative fever in 'hot stocks’ over?

A check on price chart action for dozens of favourite tech stocks shows how dramatic the rises and falls have been. Where to from here? There's better value but profits need to remain strong or prices will fall.

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Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

Supercharging the ‘4% rule’ to ensure a richer retirement

The creator of the 4% rule for retirement withdrawals, Bill Bengen, has written a new book outlining fresh strategies to outlive your money, including holding fewer stocks in early retirement before increasing allocations.

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Are franking credits worth pursuing?

Are franking credits factored into share prices? The data suggests they're probably not, and there are certain types of stocks that offer higher franking credits as well as the prospect for higher returns.

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

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