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

[@stockplan]

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

[@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.

[@DeAnnaChoi]

This is the clearest video that explains P/E ratio. THANK YOU SO MUCH!!! I am going to watch more of your videos!!!!!🙏. New subscriber here!!

[@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!

[@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

[@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.

[@AlessandroBottoni]

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

[@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-]

Sharon Ann Meny 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.

[@neilgary3471]

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

[@pubgmobileclashroyale4725]

Very helpful, your explanation is great also

[@01235634]

Very good content, keep up the good work!

[@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

[@amritanshusinghbhumihar]

Tesla is like buy and forget

[@workwork7884]

Clean and simple making the explanation wonderfully clear. As you asked how do I use P/E: Contrary to popular opinion, I was taught the opposite. I was told that analysts pour over the numbers to calculate p/e and that actually a high p/e number is what the market is telling us that the company has better quality profits and the market is willing to pay a high premium for that stock. Test it out of previous stocks the numbers will tell the full story.

[@intheplums]

Interesting

[@Fox94635]

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

[@MrPatrick1414]

Thanks. Seems everyone is ignoring the PE ratio in today's stock market. Mag 7 is so overvalued

[@BrandiDuncanRealtor]

That was so helpful! Thank you!

[@sooryashiva1370]

An underrated financial channel hope you gain lakhs of subscribers ❤

[@David_Brook]

I'm really impressed with your video. I'm planning to start my own KZbin channel with similar content and was wondering if you could share a bit about your video making process. How did you go about it. Any tips or advice would be really helpful. Thanks!

[@MrRojo89]

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

[@mpersard]

Really well explained thanks 🎉🎉

[@drbenirusani]

Hi! It's good to evaluate individual companies/stocks. but could we use P/E ratio to evaluate index fund or ETF performance? like VOO vs IVV would be the same coz they both track S&P 500. -- but how about comparing VOO vs QQQ (tracking the Nasdaq 100). TQ

[@coppcar]

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

[@ErinandEmmaFinance]

great to see you comparing PE and other companies

[@AhmadGEN362]

Very good explanation

[@chiragmehta8212]

You should have lots more subscriber.

[@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 .

[@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

[@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%

[@TerryCollinsP31Lifestyle]

Excellent video.

[@Maskeenji-e2k]

Very nice sharing

[@Rynance]

Thanks!

[@Hellokitty7163]

Dude your stuff is goood ! Thanks

[@faizasrifarabbitryfarm4001]

Easy to understand.tq

[@TerryCollinsP31Lifestyle]

Thanks for this video.

[@fb510m]

Very good!! Suscribed🙂

[@2024Red-j5t]

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?

[@Resmith18S]

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.

[@wealthychronicle-i1u]

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.

[@Countstep0099]

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

[@wealthychronicle-i1u]

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.

[@LeepinLeopard]

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.

[@RZerham]

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

[@sergiolemus1996]

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

[@riyasharma8767]

very educational

[@nathanlira-trading]

2024! Helped me a lot! Thank so much.

[@stockplan]

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

[@mukhammadaliakramov1317]

well explained thanks, Rynance

[@GordanZ]

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

[@johnblack5657]

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

[@huzaifaahmed7583]

making accounting and finance easy

[@alessandroalaimo8668]

excellent!

[@unorthodoxsavings9552]

Great video idea !!!

[@Rynance]

Thanks!

[@Oneguygarage]

awesome video. thanks, liked and subscribed.

[@wb7585]

Thank you.

[@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

[@aungkyaw6383]

Thanks a lot

[@ChoogyNet]

Solid explanation of PE ratio. Great work

[@Rynance]

Thanks!

[@GrowingFinancially]

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

[@cr04384]

Awesome, thanks.....looking forward to more

[@Rynance]

No problem! New videos every Wednesdays and Saturdays!

[@FIRE_DrNinjaTurtle]

Thank you so much

[@marcia178]

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

[@HUMAN9677.p]

Thanks bro

[@mukhammadaliakramov390]

respect teaching skill

[@ErinandEmmaFinance]

a great explanation as well

[@Rynance]

Thank you!

[@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 ?

[@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?

[@DowsStockTalk]

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

[@Rynance]

Thanks so much! I appreciate the feedback!

[@TylerSinden]

Really solid explanation! I started looking at competitors at their P/E ratios before buying stocks.

[@Rynance]

Thanks! Yeah great idea! It's really useful to compare valuations between companies!

[@DKDRFTA]

Whats a negative pe ratio

[@hanifhw4360]

Well done to understand

[@FluentinFinance]

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

[@Rynance]

No problem! I appreciate the feedback!

[@joshuaverde5362]

Thanks

[@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

[@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?

[@Benje]

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

[@Rynance]

Thanks!

[@lilmsgs]

Why didn't you give info on TTM P/E vs. forward P/E?

[@brunoproence]

What a great channel! Keep up the good work!

[@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!

[@BusinessBasics]

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

[@Rynance]

Yeah they do! Over 1000x!

[@Biz005]

Great explanation bro, thanks!

[@sonny5982]

What about negative P/E ratios

[@bena2467]

great explation

[@sjtcreation8426]

Market price per share/basis earning per share

[@Viv8ldi]

Earnings per share is not the divident right?

[@WendyChongGPV]

Do you have a group comment?

[@987654321act]

Great vdo. Thank you.

[@ayhandiker9167]

Great

[@alexandruantonica7353]

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

[@hondagoal]

Great post. thx.

[@ryminvesting6554]

Very informative video.

[@thefungiblemillennial-fina2207]

Nicely explained as always!

[@Rynance]

Appreciated!

[@fingerstylefan]

OK... second video watched...new sub. Love the way you explain things and compare. Wish I found your channel earlier.

[@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!

[@jonnya6738]

Great video. New sub here!

[@Rynance]

Thanks for stopping by!

[@DisruptiveWealthCreation]

This is so important. Thanks for sharing.

[@Rynance]

My pleasure!

[@BartChmielecki]

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

[@Rynance]

Great! Happy I could help!

[@stepclosertosuccess996]

Thank you for sharing!

[@Rynance]

My pleasure!

[@lefredrickcrawford8969]

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

[@FanaticalFinance]

PE Ratio is so crucial when learning to invest! Great video, subbed and liked!

[@Rynance]

Agreed! Thanks for checking it out!

[@Frugal101]

Great explanation i enjoyed watching

[@Rynance]

Awesome! Thanks for checking it out!

[@anhtran-wr6op]

Easy understand, thank you brother.

[@simplecanadianinvesting2966]

Nice explanation man!

[@Rynance]

Thanks!

[@GopalKrishnan-n8y]

Explain MACD, RSI

[@345cleancutcustoms3]

Very helpful thanks for sharing!!