A negative P/E ratio means the company has negative earnings or is losing money. Even the most established companies experience down periods, which may be due to environmental factors that are out of the company's control.
Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.
The price-to-earnings (P/E) ratio is a stock valuation metric that looks at share price relative to earnings per share. A negative P/E ratio means that a stock is losing money. The formula for the P/E ratio is as follows: P/E ratio = share price / earnings per share.
A negative P/E ratio shows that a company is currently unprofitable. While it can signal risk, a negative P/E ratio might be acceptable in high-growth industries where profitability takes time. Carefully assess the company's financial health, management plans, and industry position before making an investment decision.
A good PE (Price to Earnings) ratio in India usually falls between 12 and 20, indicating that a company's stock is neither overvalued nor undervalued. This range balances risk and growth potential, making it ideal for Indian stock market investment.
The p/e or price to earnings ratio is a mathematical ratio. Mathematically, the ratio can't become zero, since the stock price will rarely become a complete zero. The only possibility is the stock getting delisted from the exchange, when technically it's a zero value stock.
Positive odds ratios indicate that the event is more likely to occur, whilst negative odd ratios indicate the event is less likely to occur. Note that the coefficient is the log odds ratio.
A negative EPS is a sign that a company is spending more than its revenue and losing money. What does it mean if EPS decreases? A decreasing EPS can indicate a decline in the company's profits.
According to Tesla's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 115.76. At the end of 2022 the company had a P/E ratio of 30.6.
P/E 30 Ratio Explained
A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company's early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.
A negative book value means that a company has more total liabilities than assets. It owes more in numerical terms, but it's not automatically bad news for investors.
P-values are probabilities and as such, they range from 0 to 1. They can never be negative.
The price-to-earnings (P/E) ratio is the proportion of a company's share price to its earnings per share. A high P/E ratio could mean that a company's stock is overvalued or that investors expect high growth rates.
An odds ratio of 4 or more is pretty strong and not likely to be able to be explained away by some unmeasured variables. • An odds ratio bigger than 2 and less than 4 is possibly important and should be looked at very carefully.
Negative odds represent favorites with a better chance at winning. The drawback to this is that your profit on a winning bet is smaller.
In most cases, the favorite will have negative moneyline odds (less payoff for a safer bet) and the underdog will have positive moneyline odds (more payoff for a risky bet). However, if the teams are evenly matched, both teams can have a negative line at the same time (e.g. −110 −110 or −105 −115), due to house take.
Apple (AAPL) PE Ratio (TTM) : 38.55 (As of Jan. 14, 2025)
To give you some sense of what the average for the market is, though, many value investors would refer to 20 to 25 as the average P/E ratio range. And again, like golf, the lower the P/E ratio a company has, the better an investment the metric is saying it is.
The average dividend yield of some of the top dividend stocks is 12.69%. The best dividend stocks are shares of well-established companies that increase their payouts over time. Investors can also choose to reinvest dividends if they don't need the stream of income. Here's more about dividends and how they work.
A negative P/E ratio indicates that the company is losing money or has negative earnings. Even the most established businesses face downtime, which may be caused by environmental variables outside the company's control.
Traditionally, any value under 1.0 is considered desirable for value investors, indicating an undervalued stock may have been identified. However, some value investors may often consider stocks with a less stringent P/B value of less than 3.0 as their benchmark.
A beta coefficient of less than 1 means that a stock tends to be less volatile than the overall market. Utility and real estate stocks are two examples of industries that typically have low betas. A beta coefficient of more than 1 means that a stock tends to be more volatile than the overall market.