Understanding P/E and why it’s different on different sites / apps

Question

In these screenshots imgur.com/a/fWkRLAY you can see data on Barclays from the apple stocks app, and then two investing sites. I am relatively new to all this but am I seeing P/E of

-16.55 (telegraph), 78.55 (apple stocks), 86.96 (MSN money)

Fair enough those sources might not be recommneded or liked, but how can they be so wildly different?

Second question, how can a company have no forward P/E as shown in the last image?

in progress 0
Anonymous 3 months 3 Answers 48 views 0

Answers ( 3 )

  1. The P/E ratio is useful, but you should investigate the reason(s) why it is low or high. Is it high because the bottom has recently fallen out of its market or market share and investors have not caught up to that yet? Is it high because investors see that its market or share or both are poised to break out? Is it low because it’s the new kid on the block? Is it low because investors see no future in it?
    Like every other metric, chart or magic wand, it is useless to misleading absent insight into fundamentals; with that insight, it can be highly useful. Footprints, Dr. Watson, are only footprints until you follow them and find the foot.

  2. Is the P/E ratio a good metric to use for growth stocks?

    Yes. The P/E ratio is a good metric to use for all stocks.

    Investors like to have an excuse to buy overpriced high flying momentum stocks so that they say that the PEG ratio is more important than the P/E ratio.

    That’s nonsense. The PEG ratio tends to go down significantly over the long term.

    Benjamin Graham avoided buying stocks with P/E ratios higher than 15. I am less conservative. But I would never buy a stock with a P/E ratio higher than 20.

  3. You should be able to calculate the P/E yourself. Nowadays it seems people who are coming into buying and trading stocks and especially value investing, don’t seem to understand that time needs to be invested in order to be able to research and discover.

    Relying on modern day apps will not help you if you don’t have the time and patience to do the real work whereby you are finding the true value of a stock.

    And for those who do the great work and can value stocks correctly then you will find you can make much money over the long term through this practice.

Leave an answer

Browse
Browse