PE Ratio Explained Simply | Finance in 5 Minutes!

[@Rynance]

How do you use PE ratio to value a company?

[@quokkapirquish6825]

In the real world (not the stock market), we would aim to sell a business at a PE ration of 2, as a rule of thumb. Stock market PE ratios are just really for information id say

[@kuyajon]

you need to consider the debt level

[@kortyEdna825]

I've owned NVDA for over 8 years. It's been up and down, but I believe in Jensen Huang and will stick with NVDA until Jensen says otherwise. I know that sounds crazy, but when the financial statements/Jensen, (same to me) tell me to sell, I will. I'm sure I won't sell at the top, but that's OK.

[@KaurKhangura]

Kept $105k in CIT Bank HYSA at 5.05% but i now plan to invest in the stock market. What are your thoughts on that? What stocks should I look out for as a newbie to safely grow my money?

[@Justinmeyer1000]

Apt!! I was self-managing my portfolio but suffered heavy losses in 2022 and i knew i couldn't continue like that, so i consulted a fiduciary advisor. By restructuring and diversifying my $1.2M portfolio with dividend-paying stocks, ETFs, Mutual funds and REITs, I significantly boosted my portfolio, achieving an annualized gain of 28%.

[@carssimplified2195]

I regret selling stocks 2021 and my strategy ever since has been pretty much buying Gold and silver to protect my wealth but if I could come up with a way to profit from this bull run, that would be brilliant. I've missed so much already. can you share more info?

[@Justinmeyer1000]

I don't comfortably throw recommendations around on the internet, but I've been working with ‘’Aileen Gertrude Tippy’’ God ! she's brilliant! I'm sure there are others who are good.

[@carssimplified2195]

Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.

[@trazzpalmer3199]

These are extremely useful rules for anyone looking to grow rich. Unfortunately, the majority of individuals that see this video will be unable to implement the ideas. We may not like to acknowledge it, but as Warren Buffett famously stated, investing is like any other profession: it takes a certain amount of knowledge. It's no surprise that some people are losing a lot of money during the bear market, while others are profiting by hundreds of thousands. I'm just not sure how they do it. I now have around $570k to invest in the market.

[@Bridget-l7p]

Understanding personal finances and investing will most likely result in increased financial freedom. Individuals who understand money and investing may make sound judgments about how to save, spend, and invest their money. I know someone who made more than $350,000 in this recession-influenced market, but to the best of my knowledge, it was done through a financial advisor.

[@DavidLucas-so8rr]

A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k....

[@RobertBrown..]

How can I engage in this? I truly want to have a stable financial future and am willing to contribute. Who is fueling your success?

[@DavidLucas-so8rr]

“LAURELYN GROSS POHLMEIER ’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@RobertBrown..]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@thuylamson-z7t]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[@shizue-w7n]

Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.

[@Daneilchirs]

I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!

[@shizue-w7n]

Angela Lynn Schilling is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@Daneilchirs]

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

[@JefferyDuns]

Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?

[@PhilipDunk]

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

[@PatrickLloyd-]

I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000

[@mikeroper353]

who is your advisor please, if you don't mind me asking?

[@PatrickLloyd-]

Amber Dawn Brummit is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@mikeroper353]

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

[@sommersalt88]

I’m a god of devaluation, I buy a stock and it goes down! Why I can't make earnings is beyond me. It can be annoying how volatile the market is. How can I ride this fresh wave of all-time highs without getting burned again with 450k set aside to get fully invested this year?

[@84gaynor]

from my study, 90% of the time in an election year, the stock market stays positive for quite a long time. 2024 is no exemption, but it is better to be guided, ideally by a well experienced and licensed advisor

[@gagnepaingilly]

Certain Mag 7 companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I. We've made over 80% capital growth minus dividends.

[@gagnepaingilly]

"Jennifer Leigh Hickman" is who i work with and she is a hot topic even among financial elitist in Texas. Just browse, you’d find her, thank me later.

[@maxsmith8196]

Try to inverse all your positions, you should be making money in that case

[@BodyByBenSLC]

Just buy low fee index funds. I did and last year I made 14%

[@Riggsnic_co]

This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.

[@bob.weaver72]

These uncertainties will always be there. Thing is, every once in a while, the market does something so stupid it takes your breath away. If youre not ready for it, you shouldnt be in the market business. or get you a skilled practitioner.

[@martingiavarini]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@TheJackCain-84]

Mind if I ask you to recommend this particular coach you using their service?

[@martingiavarini]

'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@TheJackCain-84]

I just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!

[@mendeleyborisov92]

I remember having a consultation with a financial analyst last August, and it was incredibly insightful. Can’t stress enough how helpful experts in this field are!

[@mendeleyborisov92]

As long as you diversify your portfolio, any single stock or investment that you own shouldn’t have too much of an impact on your overall return. If it does, diversifying might be the right choice for you, as one can also try out other commodities. I now have a balanced portfolio that is yielding me profit with help from Jonas W Herman.

[@Ferocious923]

That’s awesome! I’ve been contemplating hiring one since I can’t get a hang of investing even after buying courses. I’d like a discussion with him. Any means to reach him?

[@mendeleyborisov92]

Hermanw jonas (a Gma!L comm Is he taking commissions for his services? Yes, I’m I still making money in the process? Hell yes!

[@Vikturneer]

I started working with Jonas back in June, and my financial goals have never been clearer. It’s like having a strategic partner for my money with a solid track record.

[@Allambeecairns]

I agree that the market can be quite unpredictable, but working with Jonas has been a game-changer for me. His market insights and strategies are consistently spot-on. It’s not just about profits; it’s also about the peace of mind that comes from knowing you’re in capable hands.

[@stockplan]

this is the best explanation of PE on the web, still since my last post

[@jevans477]

Thank you I’m new to investing and I’ve been trying to understand P/E ratio. After reading many lengthy articles, without having a clear idea, I happen across your video, and I have a better grasp of the subject. You earned a new subscriber, and I look forward to studying with you

[@AlessandroBottoni]

Very clear and entertaining explanation of a largely misunderstood concept. Congratulations!

[@pubgmobileclashroyale4725]

Very helpful, your explanation is great also

[@sooryashiva1370]

An underrated financial channel hope you gain lakhs of subscribers ❤

[@neilgary3471]

Good job man! You really explained it clearly and in a way that most people would understand.

[@Ame_rodri]

Wonderful to see a great video of good content. we all have to win in order to overcome recession and inflation The stock market provides a place where companies raise capital by selling shares or shares to investors. Shares give shareholders voting rights, as well as a residual claim on corporate earnings in the form of capital gains and dividends. But it is better to Invest in Cryptocurrencies because you earn more and better. In my role as a financial planner, I serve clients with different income levels. But my goal is the same for everyone I know. I want to help wealthy families continue to grow wealth while helping young families achieve their financial goals. Your investment creates a safe haven for the future and helps you weather the economic crisis

[@J_parker]

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[@Ame_rodri]

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[@Ame_rodri]

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[@Ame_rodri]

Shermwilli trade

[@kk_G2]

Investments are the stepping stones to success, especially if you have been guided by a professional. Is Sherman Williams Trading that good?

[@GrowingFinancially]

Great breakdown and explanation. This makes it really easy to understand. Thanks so much for sharing 😀

[@user-3456rtu]

With nearly half of my stock holdings in a tech stock at an all-time high, I've sold and now have around $400k. Considering potential inflation, should I invest in ETFs or wait for a market correction?

[@Wjkreamer-1234]

Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.

[@Upscreen6542]

Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my cash reserve has yielded from $350k to nearly $1m.

[@322dawgg]

Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.

[@Upscreen6542]

NICOLE DESIREE SIMON is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@lincoln-tser]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@ErinandEmmaFinance]

great to see you comparing PE and other companies

[@HaitianTrini]

I have been recentlt looking for some cartoonish videos to sit down and get my kids more focused on learning about the market. I will be using this channel for now. Great video

[@Dhi-fe5eu]

Question: today the P/E of TSLA is at 70 and Ford (F) is at 7. I believe that Tesla is a better company but as an investment Ford would be the better one. Right or wrong? TSLA at 70 still seems to be a much better investment.

[@Maruman_man]

It means tesla is extremely speculative. Volatile. Ford is closer to reality but also because tesla has futuristic technologies..innovative...Ford is not..low risk, low return

[@chiragmehta8212]

You should have lots more subscriber.

[@nathanlira-trading]

2024! Helped me a lot! Thank so much.

[@stockplan]

This is an excellent, excellent explanation. Give this guy credit.

[@marcia178]

As a beginner investor I was in doubts of PE ratio, you make my decision very clear. Thank you, great explanation!

[@Benje]

P/E ratio is hella important imo, great vid as always bro

[@Rynance]

Thanks!

[@Arianparfitt]

📌 *Nice video, love how you take your time to educate your viewers. You gave me the mindset to invest my savings now I have made profits over $120k Right now and still making more , I am enjoying a good life with what I made investing. Indeed ‚building a Portfolio income (investing) through a licensed investment adviser is one out of many ways to earn passive income.*

[@ppselvan]

Informative.. thanks 👍

[@ChoogyNet]

Solid explanation of PE ratio. Great work

[@Rynance]

Thanks!

[@BrandiDuncanRealtor]

That was so helpful! Thank you!

[@DowsStockTalk]

I like the animation. You did a great of explaining the PE Ratio

[@Rynance]

Thanks so much! I appreciate the feedback!

[@BusinessBasics]

Awesome work here. Thanks for sharing! Tesla must have a P/E that's through the roof

[@Rynance]

Yeah they do! Over 1000x!

[@mpersard]

Really well explained thanks 🎉🎉

[@FluentinFinance]

Another great, easy to understand explanation! Thanks for covering!

[@Rynance]

No problem! I appreciate the feedback!

[@huzaifaahmed7583]

making accounting and finance easy

[@alexandruantonica7353]

Really enjoyed it, was very helpful compared to other videos. 👌

[@Fox94635]

lovely video I had trouble with the topic now I have more

[@musicmasala8125]

Very nice sharing

[@Rynance]

Thanks!

[@unorthodoxsavings9552]

Great video idea !!!

[@Rynance]

Thanks!

[@DandyFinance]

Nicely put together! Really a fan of comparing PE and other ratios of companies from similar industries! Thanks for sharing!

[@Rynance]

As am I! Thanks for the feedback!

[@kuskatanmorales5453]

I have a question you say 50 or greater. I hear lots of people saying anything above 20 is bad what do you think about that ? Thank you for your videos I have learned a lot .

[@alejandroortizr.219]

Hey bro just wanted to say that your account is really undervalued, you explain these things way better than investopedia, TD or any other video I have seen. Love that you include further explanations and use cases for these metrics. Keep it GREAT 🤝

[@Rynance]

Much appreciated! Glad you enjoyed

[@coppcar]

I've heard the the P/E is also useful to compare a company's performance over time.

[@sergiolemus1996]

What can you infer about a stock with a negative P/E ratio?

[@AhmadGEN362]

Very good explanation

[@DreddDeJesus]

Such a great explanation for P/E ratio! I actually like to refer to this metric as well when looking for my dividend stocks. New sub here!!

[@Rynance]

Good stuff! Appreciated!

[@johnblack5657]

Trying to buy Bills Bike Shop on the NYSE but cant find it. Would love to own some of this before it skyrockets

[@riyasharma8767]

very educational

[@jsvalina3503]

Thank you.

[@GordanZ]

So how are NVIDIA p/e ratio constantly in high readings and stock price also continue to go strongly up through years ??

[@RZerham]

But how to use forward P/E ratio? Is a higher Forward PE ratio than the current PE ratio a good thing?

[@TerryCollinsP31Lifestyle]

Thanks for this video.

[@brunoproence]

What a great channel! Keep up the good work!

[@faizasrifarabbitryfarm4001]

Easy to understand.tq

[@Fish_Ventura]

Ok, but the reason I’m here is because Yahoo lists forward PE and PE. What’s Forward P/E? Was a good video, thx @rynance

[@TerryCollinsP31Lifestyle]

Excellent video.

[@MrRojo89]

Have a vid for peg ratio? Keep up the great work!

[@Hellokitty7163]

Dude your stuff is goood ! Thanks

[@mukhammadaliakramov1317]

well explained thanks, Rynance

[@satchycollins3985]

Thanks

[@FIRE_DrNinjaTurtle]

Thank you so much

[@aungkyaw6383]

Thanks a lot

[@Biz005]

Great explanation bro, thanks!

[@HUMAN9677.p]

Thanks bro

[@BartChmielecki]

Super interesting, definitely needed this! Keep up the good work :)

[@Rynance]

Great! Happy I could help!

[@leverage2279]

I hope you correct me of i were wrong but isnt apple and amazon very different businesses? Apple develops gadgets like iphones, wile amazon is some kind of an online platform.. Shouldnt apple rather be compared to companies like samsung or huawei?

[@bena2467]

great explation

[@hondagoal]

Great post. thx.

[@lefredrickcrawford8969]

Can someone with experience please be my mentor I can really use it , I know little to nothing but I been learning

[@FranciscoGalicia]

awesome video. thanks, liked and subscribed.

[@fb510m]

Very good!! Suscribed🙂

[@ayhandiker9167]

Great

[@rayanandayaeverydaylife9844]

Inspiring people with this kind of video content is good job my friend. I am very proud of you,! Im just here to give you full support always, thank you my friend

[@Rynance]

Thanks for the support!

[@rayanandayaeverydaylife9844]

@@Rynance Big thanks to you my friend and i will see you always. Please stay connected,

[@DKDRFTA]

Whats a negative pe ratio

[@2011Savere]

Lower PE ratio is a better buy?

[@atowari]

Yep, but as he also said in the video it also differs from industry to industry. So when comparing P/E ratios compare apples to apples.

[@modojocorlee2241]

What does the PE value mean if it's negative? For example, Boeing's EPS is a negative number, their PE value is N/A. What does this mean?

[@AEY-Gaming]

The company is losing money. The company is not generating profits. The higher the (negative number is) -> shame on that company

[@mrmeftw781]

So a company with a less P/E ratio say 10 is a better investment as a 37x ratio as you compared to McDonald’s?

[@sjtcreation8426]

Market price per share/basis earning per share

[@Viv8ldi]

Memo: pe pf 10 means share is cheap pe 50 means share is overvalued

[@Viv8ldi]

Earnings per share is not the divident right?

[@ryminvesting6554]

Very informative video.

[@Kanyewest-g9f]

What happens if the P/E is -4.5$ NIO and -11 $ xpeng but China just got chip sanction yesterday. How does PE help me decide on this similar stock

[@noemitinoco7090]

Is there anything wrong with the ratio being too low? 5x for example ?

[@robbieb2011]

Every Chinese company has a PE ratio below 10. It seems like a great buy...but there is a reason its trading at a discount.

[@GopalKrishnan-n8y]

Explain MACD, RSI

[@Frugal101]

Great explanation i enjoyed watching

[@Rynance]

Awesome! Thanks for checking it out!

[@stepclosertosuccess996]

Thank you for sharing!

[@Rynance]

My pleasure!

[@anhtran-wr6op]

Easy understand, thank you brother.

[@lazarusrize]

Per Yahoo! Finance, a “P/E ratio of 15 doesn’t mean a whole lot unless you also know the P/E of the market as a whole, the P/E of the company’s main competitors, the company’s historical P/Es, and similar information.” Question: (A) How do you measure the “market as a whole”? (B) What does it mean when a stock has a - or N/A next to it? (C) Can you use a company’s P/E in the pharmaceutical industry to analyze?

[@sonny5982]

What about negative P/E ratios

[@345cleancutcustoms3]

Very helpful thanks for sharing!!

[@DisruptiveWealthCreation]

This is so important. Thanks for sharing.

[@Rynance]

My pleasure!

[@thefungiblemillennial-fina2207]

Nicely explained as always!

[@Rynance]

Appreciated!

[@AltrenThomps]

LOVE YOU

[@jonnya6738]

Great video. New sub here!

[@Rynance]

Thanks for stopping by!

[@RyanDinz]

Nicely broken down Ry!

[@Rynance]

Much appreciated!

[@Viv8ldi]

Memo: only compare pe ratios of companies from the same sector, never compare amazon with mcdonalds for example

[@thestockexplorer]

Like #15 👍 Thanks for your continued support on my channel 🙏

[@Rynance]

Thank you too!

[@WendyChongGPV]

Do you have a group comment?

[@mr.dividend.investor]

Some companies have crazy PE ratios these day! Solid video my friend. Smashed the like button for you. Big liked #47. Aloha

[@Rynance]

They do! Tesla is a good example of that with a PE of over 1000!

[@CanadianDividendInvesting]

Great explanation man!

[@Rynance]

Thanks so much!