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Re: [sharechat] Newbie Question

From:	"Steve Moxham" <moxy@ihug.co.nz>
Date:	Wed, 15 Dec 1999 09:41:56 +1300

The P/E of a stock is the share price divided by the reported (current) earnings per share.

It is not based on a forecast, but real black (or red) figures.

----- Original Message -----

From: Paul Jackson

To: sharechat@sharechat.co.nz

Sent: Wednesday, 15 December 1999 09:21

Subject: [sharechat] Newbie Question

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

References

[sharechat] Newbie Question Paul Jackson

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