Terminology Flashcards
1
Q
Define Price/Earnings Ratio (PE)
A
A way to value a company. It helps determine whether a stock is overvalued or undervalued. It tells you how much you are paying for each DOLLAR of EARNINGS.
2
Q
What is a great website for stock terminology?
A
INVESTOPEDIA.com
3
Q
Trailing P/E
A
- based on the last 12 months of actual earnings.
CALCULATED: current stock price divided by trailing earnings per share (EPS) for the past 12 months.
4
Q
What is a good PE for a stock
A
The average range is 20-25. The lower the PE ratio the betting investment.
5
Q
Define Beta
A
Measures stock volatility compared with the markets volatility. The market as a whole has a beta of 1.
6
Q
Forward P/E
A
Forward price to earnings
7
Q
PEG Ratio
A
0.5 & 1. <0.5 excellent stock undervalued
8
Q
EPS
A
Earnings per share
9
Q
MRQ
A
Most recent quarter
10
Q
Ttm
A
Trailing 12 months
11
Q
Yoy
A
Year over year
12
Q
Fye
A
Fiscal year earnings
