A negative PE (Price/Earnings) means Earnings are negative,eaning the stock is loss making. So, do not buy the stock even by mistake.
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.
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.
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.
Now, here's the thing: If stocks' average EPS growth is rising over time, the stock market's P/E ratio needs to settle at a higher level, as well, to fairly price in the higher profit growth. That's why today's P/E ratio of around 30 isn't as alarming as it would have been in the past.
Apple (AAPL) PE Ratio (TTM) : 38.55 (As of Jan. 14, 2025)
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.
Since some of the integers are negative and some are positive, we can definitely have a negative ratio between them.
If a company has a negative debt ratio, this would mean that the company has negative shareholder equity. In other words, the company's liabilities outnumber its assets. In most cases, this is considered a very risky sign, indicating that the company may be at risk of bankruptcy.
The higher the net income, the higher the retention rate. Negative retention rate: When a company pays its shareholders more dividends than the profits it earns in a year, the result yields a negative retention rate.
High PE can indicate high future growth expectations; low PE may suggest undervaluation. Low PB can suggest undervaluation, high PB may signal overvaluation or growth expectations. Can be influenced by non-operational factors and market sentiment. More stable, based on tangible book value of the company.
For investors, a negative stockholders' equity is a traditional warning sign of financial instability. It can damage a company's ability to secure financing or investment.
A negative P/B ratio indicates that a company has more liabilities than assets. However, this is not always bad news for investors. Some companies carry heavy debt, or there might be outside economic factors that are temporarily impacting the company.
What is PE Ratio? Price to Earnings Ratio or Price to Earnings Multiple is the ratio of share price of a stock to its earnings per share (EPS). PE ratio is one of the most popular valuation metric of stocks. It provides indication whether a stock at its current market price is expensive or cheap.
This ratio is used to assess the current market price against the company's book value (total assets minus liabilities, divided by number of shares issued). To calculate it, divide the market price per share by the book value per share. A stock could be overvalued if the P/B ratio is higher than 1.
To understand a negative P/E ratio, it's important to note that the value of a stock can never be negative. So, a negative P/E ratio only happens when there's a negative EPS. A company's earnings might be negative when it either has no earnings during a quarter or reports a loss.
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.
In this way, the ratio almost always is a negative number, and it is easier to visualize that it is the net reduction (or burden) to Net Interest Income that combines towards overall earnings.
If the PE of a Bohr's hydrogen atom in the ground state is zero, then its total energy in the first excited state will be : 23.8eV.
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. But it doesn't stop there, as different industries can have different average P/E ratios.
According to Tesla's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 118.273. At the end of 2022 the company had a P/E ratio of 30.6.
The PE ratio for Amazon Com stock stands at 45.9 as of Jan 10, 2025. This is calculated based on the TTM EPS of $4.77 and the stock price of $218.94 per share.
The mean historical PE ratio of Costco Wholesale over the last ten years is 35.42. The current 54.17 P/E ratio is 53% higher than the historical average. Looking back at the last ten years, COST's PE ratio peaked in the Nov 2024 quarter at 56.47, with a price of $964.01 and an EPS of $17.07.
According to Coca-Cola's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 24.759. At the end of 2022 the company had a P/E ratio of 28.9.