VituVingiSana wrote:jerry wrote:hisah wrote:I maintain my stand that banks are already priced in at the moment. More excitement will come when they report Q1 2011 results. ....
KCB remains undervalued at a PE of 6.91. I'll not sell at below 30/=.
Please show me the calculations that indicate a PE of 6.91 for KCB The price-to-earnings ratio (P/E) is probably the most widely used -- and thus misused -- investing metric. It's easy to calculate, which explains its popularity. The two most common ways to calculate it are:
P/E = share price divided by earnings per share
P/E = market capitalization divided by net incomeThe share price is the market capitalization divided by the number of shares, so the results should be identical. Share price and the market cap are easy to find in the quote section of any financial website. The earnings are usually taken from the trailing 12 months (TTM) and can be found by checking the income statement for the past four quarters. A P/E using TTM figures is often called the current P/E.
Another variation is the forward P/E, which is calculated using analyst future earnings estimates, rather than actual historical earnings. Most financial websites give both the current and forward P/E. I find forward P/E a useful guide for cyclical companies, companies coming out of negative earnings, and those that have significant one-time charges embedded in current earnings. You may also encounter the dilutedP/E, which accounts for a company's diluted shares.
i am sure @ VVS you passed your nursery maths lessons. If you didnt get anything just note that
P/E = share price divided by earnings per share
OR
P/E = market capitalization divided by net income
NO rocket science.
Your future depends on your dreams so go to sleep !