Hi my assignment is due like TODAY.

Question

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?

Answer 1

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?

Answer 2

Okay. Thank-you. Quick question though, what are the EPS and PE?

Answer 3

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.

Answer 4

Okay I have the EPS as earnings per share but is PE price earning ratio or private equity?

Answer 5

Okay, thank-you for all your help! I think I'll use the PE