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Community


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Online Share Trading

Engage and learn about markets and trading online

1330

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Rams
Super Contributor
PE a ratio.....multiply by 100 for a whole number.So 0,50. X 100 is 50.....
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Preston
Super Contributor
Good golly Gosh, you have seriously lost the plot.
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Preston
Super Contributor
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Preston
Super Contributor
Simon, This is not personal, it is abt getting the basic right. There is a massive difference between investing in a company with a PE ratio of 50c and PE ratio of R50. Let us not even go into Forward PE. Let us understand the basic first, cos others in this forum could purchase shares in a company based on incorrect calculation and interpretation. PE ratio is the starting, then it is the Earning Yield, Dividend payout ratio, Rentention Ratio, and so forth and so on.
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Rams
Super Contributor
Okay, now like we in grade R.......convert the share price into cents.....multiply by 100. I just can't make it any easier or drop the grade any lower! PRESTON, WAKE UP!
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Preston
Super Contributor
RAMS, you are doing the calculation of Earning Yield and passing it of as PE Ratio. Have a look at both of that formula and its interpretation.
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Preston
Super Contributor
Earnings yield is the quotient of earnings per share divided by the share price. It is the reciprocal of the P/E ratio.
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Rams
Super Contributor
Simon , as an educator, can you sort this out....dividing rands by cents, is this for real?and more so, price in 2016 will be 90 000 cents odd for 4474 cents per share...we can't allow this on a platform like this....we have to correct this
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Preston
Super Contributor
RAMS, it is not the rands and cents that is the problem. It is the incorrect use of the Formula's. Instead of debating this issue, why don't you learn from your apparent mistake.
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Rams
Super Contributor
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mullet_fish
Regular Contributor
Rams is getting his "excitement" on this forum finally (in another poste he said things were slow) ....the more debate the better....even if one side is illogical!
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Rams
Super Contributor
Hey Mullet, this forum used to have a lot of aggression , some aggressive people have been banned, but the aggression was all about ego....so I try my best to stop feeding people's ego, but today I had a relapse.....
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WES
Super Contributor
Rams, it works as follows, return = Dividend yield + growth, therefore dividend yield = r-g/1+g and therefore Earnings yield = Div Pay Out %/(r-g)/(1+g)
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samoa
Super Contributor
I would seriously consider money market................
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samoa
Super Contributor
Watching SOL closely.Will close on high at LDT tomorrow. Overreaction expected either on Friday or Monday. My guns are drawn...both. "Hoogtevrees" now very near.
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Rams
Super Contributor
Wes, thanks,and nice equations, but thats a different topic altogether...
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SimonPB
Valued Contributor
no, earnings yield is inverse of PE .. so earnings divided.by price (*100 to get %) ..
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Rams
Super Contributor
and this more relevant when this serious mistake made by preston: Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:1330 by Preston on 03 Oct 11:12 Firstly , You have clearly switched your numerator and denominator around. Let address your calculation, with a share price of R2270, and with earning of R4474, PE will be 0.50 and not 50. My calculation is that you are paying 50c to participate in R1 of NPN earning, instead of your R50....... Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:1330 by Rams on 03 Oct 11:38 PE a ratio.....multiply by 100 for a whole number.So 0,50. X 100 is 50.....
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Preston
Super Contributor
RAMS, your stupidity will cost you money....End of debate.
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Preston
Super Contributor
Dear Simon, Earning Yield, you will multiply by 100. For PE Ratio, you need not multiply by 100 cos it is MV/EPS.
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