Followup question...please correct if wrong I'm still new
A fair PE is when PE = growth rate % of the EPS
So if an announcement says EPS increased 18%, then a fair PE is 18x, and hence you can calculate the fair price to buy in? (Excluding all other considerations you need to have for...
Thanks for the replies
I ask because when I look in Commsec, I see PE, Price, and EPS
But they don't match
Example CSL
PE 26.55
Price as of today $92.09
EPS $2.857
Is it because the EPS I'm looking at is from the last report 2014 and not current? (I'm looking at the Forecast & Trends tab)
Need some clarification on analysing whether a stock is too expensive for current PE ratio
Example:
Current PE: 60
Current price of stock: $2
EPS current: $0.02
Here is where I started dabbling - please correct if I'm wrong
Price to be neutral: Current PE * EPS current = $1.20...
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