Asked by Em
Hi my assignment is due like TODAY.
I need three simple criterion to evaluate whether it is good to buy shares in a company. So far I have the profability of shares, the potential for a share to be blue-chip but I am lacking a third.
I'm stuck because I have already evaluated the varying stock prices twice in two different ways, is there anything else I can do? I also looked at the volatility of the market in blue-chip criterion
HELP! What else can I use?
I need three simple criterion to evaluate whether it is good to buy shares in a company. So far I have the profability of shares, the potential for a share to be blue-chip but I am lacking a third.
I'm stuck because I have already evaluated the varying stock prices twice in two different ways, is there anything else I can do? I also looked at the volatility of the market in blue-chip criterion
HELP! What else can I use?
Answers
Answered by
Ms. Sue
Here are some criteria I consider.
Has the company steadily increased its sales and EPS?
Is the PE in a reasonable range?
What kind of future does this company have?
Has the company steadily increased its sales and EPS?
Is the PE in a reasonable range?
What kind of future does this company have?
Answered by
Em
Okay. Thank-you. Quick question though, what are the EPS and PE?
Answered by
Ms. Sue
Oh, my! You need to learn these abbreviations if you're taking an econ class and studying the stock market.
EPS = earnings per share
PE = price earnings ratio. That's the price divided by the earnings. For instance, a PE of 18 means that stock purchasers are paying 18 times the earnings for a share of that stock.
EPS = earnings per share
PE = price earnings ratio. That's the price divided by the earnings. For instance, a PE of 18 means that stock purchasers are paying 18 times the earnings for a share of that stock.
Answered by
Em
Okay I have the EPS as earnings per share but is PE price earning ratio or private equity?
Answered by
Em
Okay, thank-you for all your help! I think I'll use the PE