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[sharechat] Newbie Question


From: "Paul Jackson" <j+pjackson@xtra.co.nz>
Date: Wed, 15 Dec 1999 09:21:35 +1300


I am struggling to understand PE ratios. Please correct me if I'm wrong, my understanding is the ratio of the current share price to the forecasted earnings of the company. If so who does the forecast? The company? An analyst? What method is used to forecast this? Who checks the maths and logic in the forecast?
 
Your help in this would be appreciated
 
Paul

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