Vad är ett P/E-tal? | Nordnet Academy

Summary

The video script explains the P/E (Price-to-Earnings) ratio, a key financial metric to assess stock valuation. It's calculated by dividing the share price by profit per share, reflecting the cost of a company's earnings. The script uses Edwins Chilliodling AB as an example, illustrating how to calculate and interpret the P/E ratio, noting that while a high P/E might indicate high expectations, it doesn't guarantee future performance. It also highlights the importance of understanding risks and returns in stock investments, with a reminder of the historical performance of the Stockholm Stock Exchange and the availability of further educational resources at Nordnet Academy.

Takeaways

• 📈 The P/E ratio is a key financial metric used to determine if a stock is overvalued or undervalued.
• 💰 'P/E' stands for 'Price to Earnings', where 'Price' is the share price and 'Earnings' refers to the profit per share.
• 🧮 Profit per share is calculated by dividing a company's total profit by the number of shares it has.
• 🔍 On Nordnet's platform, the P/E ratio can be found under 'Key data' in the 'About the company' section of an instrument page.
• 🌰 An example given is Edwins Chilliodling AB, with a share price of SEK 25 and a profit per share of SEK 5, resulting in a P/E ratio of 5.
• 🔎 A P/E ratio helps investors gauge the relative value of a company's shares compared to its earnings.
• 📊 Historically, the average P/E ratio on the Stockholm Stock Exchange has been between 14 and 17.
• 🚀 A high P/E ratio could indicate high expectations for a company's future growth, which may or may not be met.
• ⚠️ Companies with high P/E ratios are at risk of underperforming if they fail to meet market expectations, potentially affecting their stock price.
• 📚 For further learning on stocks, the Nordnet Academy offers more articles on the subject.
• ⚠️ Investing in shares and mutual funds carries risks; returns are not guaranteed and there is a chance of losing the invested capital.

Q & A

What is the P/E ratio and why is it important?

The P/E ratio, or Price-to-Earnings ratio, is a financial metric used to evaluate the valuation of a company's shares. It is calculated by dividing the market value per share by the earnings per share (EPS). It's important because it helps investors determine if a stock is overvalued or undervalued relative to its earnings.

What does the 'P' and 'E' in P/E ratio stand for?

In the P/E ratio, 'P' stands for 'Price,' referring to the share price of a company, and 'E' stands for 'Earnings,' which is the profit per share, calculated by dividing the company's total profit by the number of shares.

How can I find the P/E ratio of a company on Nordnet's platform?

On Nordnet's platform, you can find the P/E ratio by going to the Overview tab of an instrument page and then switching to the 'About the company' section, where the P/E ratio is listed under 'Key data'.

Can you provide an example of calculating the P/E ratio using Edwins Chilliodling AB as a reference?

Sure. If Edwins Chilliodling AB has a share price of SEK 25 and makes a profit of SEK 5 per share, the P/E ratio is calculated by dividing the share price (25) by the profit per share (5), resulting in a P/E ratio of 5.

What does a P/E ratio of 5 imply about the company's stock valuation?

A P/E ratio of 5 suggests that the stock is priced at 5 times its earnings. This could indicate that the stock is relatively cheap compared to the company's earnings, but it's essential to consider other factors and the industry average before making a judgment.

What is the historical average P/E ratio range for the entire Stockholm Stock Exchange?

Historically, the average P/E ratio on the Stockholm Stock Exchange has fluctuated between 14 and 17.

Can a high P/E ratio always be considered as an indicator of an expensive stock?

No, a high P/E ratio does not always mean the stock is expensive. It could also reflect high expectations for the company's future growth, suggesting that the market believes the company will have increasing profits in the future.

What are the risks associated with investing in companies with high P/E ratios?

Investing in companies with high P/E ratios can be risky because if the company fails to meet the high expectations reflected in the P/E ratio, the stock price may decline, leading to potential losses for investors.

How can I learn more about shares and investing?

You can learn more about shares and investing through various articles and educational resources available in the Nordnet Academy.

What is the general risk associated with investing in the stock market?

The stock market carries the risk of capital loss. Although historical returns have been positive over time, there are no guarantees for future returns, and there is a chance you may not recover the amount you invested.

What does Nordnet remind its users about the nature of stock market investments?

Nordnet reminds its users that the stock market can be unpredictable, with the potential for both gains and losses. It emphasizes that while there is a historical trend of good returns, there is always the risk involved in investing, and there are no certainties regarding future performance.