read this before you buy greif, inc. (nyse:gef) because of its p/e ratio
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Today, we will introduce the concept of price-earnings ratio for those who are learning to invest.
We will analyze the basic price-earnings ratio of Greif, Inc. Application\'s (NYSE:GEF)
To help you decide if the stock is worth further research.
The price-earnings ratio of Greif is 10.
52, based on the past 12 months.
This is equivalent to a yield of about 9. 5%.
Please see our latest analysis of Greif. The formula of price-earnings ratio is: price-earnings ratio = price-earnings per share (EPS)
Or Greif: P/E for 10. 52 = $40. 05 ÷ $3. 81 (
According to the 12 months ended January 2019. )
A higher P/E ratio means buyers have to pay higher prices for every dollar the company earned last year.
Everything else is equal, it\'s better to pay a low price-
But as Warren Buffett said, buying a good company at a reasonable price is much better than buying a good company at a reasonable price.
Generally speaking, the profit growth rate has a profound impact on the company\'s P/E ratio.
Revenue growth means that \"e\" will be higher in the future.
This means that even if the current P/E ratio is high, if the share price remains the same, it will decrease over time.
The lower P/E ratio should indicate that the stock is cheap compared to other stocks ---
This may attract buyers.
Graves earnings per share growth-7.
3% of the last 12 months
It also tripled earnings per share.
6% pounds a year for the past five years.
The price-earnings ratio basically measures the company\'s market expectations.
We can see the average P/E (17. 9)
For companies in the packaging industry, P/E is higher than Greif.
This suggests that market participants believe Greif will perform poorly in their industry.
Since the market does not seem to be impressed with Greif, it is very likely that it will surprise.
If you think this stock is interesting, it is recommended to study further.
For example, I often supervise the buying and selling of directors.
One drawback of using the p/e ratio is that it takes into account the market value, not the balance sheet.
Therefore, it does not reflect the advantages of cash or the disadvantages of debt.
In theory, a company can reduce its future p/e ratio by using cash or debt investment growth.
Growth spending may be good or bad after a few years, but the problem is that the P/E ratio does not take this option into account (Or missing).
Greif\'s net debt amounts to 50% of its market value.
You want to know the truth, but it doesn\'t bother us.
The P/E of Greif is 10.
Below average (18. 4)
In the US market.
The company\'s balance sheet has not expanded and revenues are rising.
P/e ratio means the market is cautious about the long-term prospects.
Investors should consider buying the wrong stock in the market.
As Benjamin Graham, a value investor, famously said: \"In the short term, the market is a voting machine, but in the long run it is a weighing machine.
Therefore, this free visual report on analyst forecasts may be the key to making excellent investment decisions.
Of course, you may find a better stock than Greif.
So you may want to see a free collection of other companies with strong revenue growth.
Our goal is to bring you
Term focus research analysis driven by basic data.
Please note that our analysis may not take into account the latest prices
Sensitive company announcements or qualitative materials.
If you find an error that needs to be corrected, please contact edit when editing
Team @ simplywallst. com.
To put it simply, this article by Wall St is general.
It does not constitute a suggestion to buy or sell any stock, nor does it take into account your goals or your financial position.
Simply put, Wall Street has no position in the above shares.
Thank you for reading.