P/E discussion | Stocks and bonds | Finance & Capital Markets | Khan Academy

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  • Опубліковано 18 сер 2009
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    Discussion of the price-to-earnings ratio. Created by Sal Khan.
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КОМЕНТАРІ • 41

  • @patrickfringer2666
    @patrickfringer2666 2 роки тому +1

    Mr. Khan, I used to watch your videos when I was studying at university, mostly science and math (2009-2013). Now I have returned for finance + stock market information (2021). Thanks for all the content!

  • @trackhero2714
    @trackhero2714 3 роки тому

    11 years later and nobody else can explain this stuff better than Khan ! Love the content. Love Khan academy!!

  • @kashifmunir7009
    @kashifmunir7009 6 років тому +5

    Sir i just discovered ur lectures... I think i made the biggest discovery of the year.... I m in love with ur lectures...... Sir wonderful job done

  • @andresbarriosnuevo5169
    @andresbarriosnuevo5169 7 років тому +3

    thank you, so much easier listening to someone explain than just reading it

  • @booil
    @booil 14 років тому +2

    I really liked this. I never quite got what P/E was or how to use it when considering a company's potential price!

  • @uniXlyTV
    @uniXlyTV 14 років тому +1

    Thanks for the very interesting and informative video that really explains P/E Ratios in an easily digestable format.

  • @abhinavitsmebellamy
    @abhinavitsmebellamy 4 роки тому +1

    Excellent video. Thanks!!

  • @Bnhappyworld
    @Bnhappyworld 14 років тому

    Good definations to P/E. simple and logic tips.thanks for sharing,Merry Christmas.

  • @malthus101
    @malthus101 7 років тому +1

    Thanks Khan! I get it now... ;)

  • @TheChoktube
    @TheChoktube 9 років тому +1

    Thank you.

  • @jtaylor100100
    @jtaylor100100 5 років тому

    Really enjoying the videos, Do you have a video on Growth ratio of Equity/EPS/ and Sale?

  • @bobyay932
    @bobyay932 4 роки тому +1

    man this is cool

  • @vinniepaz730
    @vinniepaz730 14 років тому

    No usually when you calculate Earnings Per Share, You subtract the dividends from the Net Income divided by the shares outstanding. So essentially the EPS comes after taking out the dividends paid.
    Think of it this way, the dividends paid to shareholders are not counted in the EPS. Although I could be wrong as what i'm talking about is preferred dividends.

  • @jadam7525
    @jadam7525 7 років тому

    Hi, how does leverage impact PE ratios (presuming in the same industry, same growth rates etc)?

  • @auliahamdanifeizal
    @auliahamdanifeizal 5 років тому

    I think company C is an unlikely case. With increasing earning, price/share will also go up because people want to buy it, then P/E will also go up too. Like you said, market will not allow free money. CMIIW

  • @haidenmorgan
    @haidenmorgan 11 років тому

    the market value of that share can safely be decided by the MFRY or the Graham Number or the Price to Tangible Book Value (all the same).

    • @tomast1323
      @tomast1323 5 років тому

      Haiden Morgan 😂😂😂

  • @redplastic
    @redplastic 14 років тому

    Question: Let's say for 2012, the P/E is 6.25 (using the example in the lesson)...how can I use that number to evaluate the market value of that share in 2012?

  • @octan488
    @octan488 14 років тому +1

    1st everything 5/5

  • @BlTCHEZAlNTSHlT
    @BlTCHEZAlNTSHlT 12 років тому +2

    reupload this in 720p :D

  • @ros7754
    @ros7754 7 років тому

    That quality tho

  • @sorax333
    @sorax333 10 років тому

    I am very new to the stock market.
    My biggest concern is Earnings Per Share?
    if I were to buy a share of any company and for example the EPS is 5 dollars.
    is that the only thing I get or is it 5 dollars per Hour or Day. aslo if I decide to hold on to the share and forget about it for a week and during that week it goes up or down. will I gain more money or owe money in the process.

    • @zachmangus7689
      @zachmangus7689 7 років тому

      VOLXIN you can never owe money if you are buying shares. you can lose your initial investment, but that's it (assuming you're not shorting stocks).

  • @kaushikmaulik5761
    @kaushikmaulik5761 6 років тому

    I can't see the video, any problem??

  • @hbone_alldayeveryday
    @hbone_alldayeveryday 6 років тому +1

    howdy, how do you quantify the the P/E if the EPS is negative? I understand how to do the math but what the hell do i do with a negative P/E ratio?

    • @flamflamflam
      @flamflamflam 5 років тому

      You can look at something different like price to sales. sales should always be positive. You can also look at operating cash flow and and look at price to Operating cash flow. Operating cash flow should be positive too. If it isn't.... well than I probably wouldn't buy it. :)

  • @mrcibaca
    @mrcibaca 12 років тому

    hi...won't the price of $100 change over different periods...i believe its the market price....so accordingly the p/e ratio should also vary...isn't it so

  • @cmaonlinetraining
    @cmaonlinetraining 9 років тому +1

    HI MR.KHAN..CAN YOU TELL ME WHICH SOFTWARE YOU USE TO RECORD THIS CLASS

    • @Dylan-vb4bb
      @Dylan-vb4bb 8 років тому

      "What equipment do you use to make your videos? I use Camtasia Recorder ($200) + SmoothDraw3(Free) + a Wacom Bamboo Tablet ($80) on a PC. I used to use ScreenVideoRecorder($20) and Microsoft Paint (Free)."

    • @cmaonlinetraining
      @cmaonlinetraining 8 років тому +1

      Thanks a lot for the information

  • @edwinicogo5022
    @edwinicogo5022 8 років тому

    hi, what is a negative p/e?

    • @Dylan-vb4bb
      @Dylan-vb4bb 8 років тому +1

      Negative P/E is if a company either has no earnings or is posting losses. Usually a negative P/E will not be displayed as a negative number rather, it would just be labelled "N/A"

  • @michaeldoces2417
    @michaeldoces2417 3 роки тому

    Lol Watching this in 2021, its so weird hearing references to the Great Recession as if its a current thing.

  • @kevinmbtbass
    @kevinmbtbass 3 роки тому

    "Who in their right mind would buy a stock with a 100 P/E ratio???"
    2021 TSLA:
    "Pathetic..."

  • @1314joycetan
    @1314joycetan 4 роки тому

    nobody is watching this in this crazy market?hummmm

  • @petertjebooty
    @petertjebooty 3 роки тому

    Where are all the Tesla owners? :D

  • @haidenmorgan
    @haidenmorgan 11 років тому

    370% consistently? trading what cocaine?

    • @tomast1323
      @tomast1323 5 років тому

      Haiden Morgan No, TCEHY