Is it still the right time to buy Microsoft, Nvidia and Intel?
Is it still the right time to buy these stocks? Are they cheap or expensive?
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.
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.
- Current Stock Price: 281.92
- Current PE: 35.02
- Average PE: 32.73
Conclusion:
- Microsoft's current PE(35.02) is a little higher than the averagee(32.73), but stilla fair price.
- Current StockPrice: 207.16
- Current PE: 74.12
- Average PE: 67.96
Conclusion:
- Nvidia's current PE(74.12) is a little higher than the average(67.96), but still a fair price.
- Current Stock Price: 53.28
- Current PE: 11.84
- Average PE: 11.67
Conclusion:
- Intel's current PE(11.84) is close to the average(11.67), it's a fair price.
Tips: You can find the PE ratio at here in Moomoo
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.
And PE is a long-term indicator, so it cannot provide much help for short-term transactions.
If there is anything else you would like to know, ask me in the comment section below! ![]()
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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102760870 :
102760870 : Thank you for your guidance, appreciated.
Can I know why some it shown negative sign ?
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.
PE = Market value per share / Earnings per share. So if a company's earnings is negative, the PE is shown negative sign.
When a company at a loss, we cannot use PE for its valuation.
Value Referee OP Mike Hunt : Sorry for this late reply.
Yes, the industry average is another way to compare. But in some industries, the PE gap between companies is huge. Also, the market usually gives the leader company a valuation premium, but small companies don't have it.
I only use the company's own historical PE in my post because it's easy to understand for the people who don't know valuation, but it's not the only factor for me to make decision.