NVDA
NVIDIA
-- 144.470 TSLA
Tesla
-- 410.440 AMD
Advanced Micro Devices
-- 125.370 CRNC
Cerence
-- 19.330 MSTR
MicroStrategy
-- 339.660 We will use stock's PE ratio to answer these questions. It is an indicator to help investors measure the stock price.
By comparing the stock's current PE with its historical average PE, we can simply see whether the current share price is high or low.
Generally, a low PE might indicate that the current stock price is low relative to earnings.
PE is not the only way to valuate stocks, but past average PE can work as a benchmark when comparing with current PE. This will help us get an idea on whether the stock is 'cheap or expensive'.
And PE is a long-term indicator, so it cannot provide much help for short-term transactions.
102760870 :
102760870 : Thank you for your guidance, appreciated.
I M POSSIBLE : buy if have the money
Mike Hunt : If P/E is the only metric, $Taiwan Semiconductor (TSM.US)$ is a much better value than $NVIDIA (NVDA.US)$
Mike Hunt : And I would question comparing a stock with its own historical price to earnings ratio. I think it’s more telling to compare it to the industry average instead. And really instead of market cap, enterprise value is a much better metric for the worth of a company.
Value Referee OP 102760870 : Sorry for this late reply.
Value Referee OP Mike Hunt : Sorry for this late reply.