FC posted:ba$eman posted:FC posted:ba$eman posted:You are too dumb to get into the subject matter! Stick to halaal financing!! You are a dummy to believe a PE of 15X is all about today's earnings. That as deep as I will get with you. You are too dumb to start educating here!
You are a shallow twerp whose education is reading the newspaper!!
Who is talking about PE? Your ignorance is on display. Go and Google what is a PE ratio and how it is calculated before spouting nonsense. You know shit. Just throwing shit out and hoping it sticks and you are the smartest man on the board. Lol
You are a dummy!! Do you think the Markets are dialing in today's declared earnings, which is based on yesterday's performance? Banna, I don't throw shit at shit!!
Being the smartest person on the board you do have difficulties reading and understanding what you read. Go back reread what wrote. Stock prices are based on current earnings report and future guidance. I don't think you have a grasp of this basic concept.
Once again Trump agenda has stalled and it appears at this juncture that the house will not pass any of these initiatives.
once
FC - A short helicopter view:
FC - If earnings is $1.95, why is the stock at $43?
For example, suppose that a company is currently trading at $43 a share and its earnings over the last 12 months were $1.95 per share. The P/E ratio for the stock could then be calculated as 43/1.95, or 22.05.
FC, it's all about expectations, not what's in the bag!
A stock with a high P/E ratio suggests that investors are expecting higher earnings growth in the future compared to the overall market, as investors are paying more for today's earnings in anticipation of future earnings growth.
FC - The very basics of the Markets for Industrials
The relationship between a company's earnings and its stock price can be complicated. High profits don't necessarily mean a high stock price, and big losses don't always lead to a low stock price. Of course, without earnings it is hard for companies to stay in business for long. You could say that two of the major factors that influence stock price are current earnings and promise of future earnings.
FC: there are other more complex measures to gauge a company however, PE under US GAAP (US Listed) is the broadest of measures. Banks, etc used price-to-book, etc while others use EBITDA, Discounted CF/FCF, etc, and traditional Industrials and analyst also use them to triangulate with PE on earnings quality!
There are also technical indicators which could move the markets in the short term. Furthermore, interest rates are a big factor. Higher rates create competition with dividend yields and may pressure the FCF of highly leveraged companies bringing the markets down!
FC: The Trump effect - Lower taxes means higher FCF, as such, richer dividends. Furthermore, it creates headroom in the operating P&L which makes hiring easier! Added, Trumps plan on Infrastructure has created a ballooning in the valuation of languishing bricks and mortar companies. These factor are the underpinnings of the broad rally in the Stock Markets under Trump, especially that inflation remains tempered!