Below is the PE graph for 2008 bear market
Bottom was formed around 10 and stayed for few months before started to move up.
Now let us look at how PE travelled from 2018 to till date
Current PE ratio is around 18.22.
Summary - If its a Bear market worser than 2008 then there is lot of pain left for long period.
What Is Price-to-Earnings Ratio – P/E Ratio?
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS).
The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.
P/E Ratio= Market value per share / Earnings per share
What Is Earnings Per Share – EPS?
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution. The higher a company's EPS, the more profitable it is considered.
Earnings per Share= (Net Income − Preferred Dividends) / End-of-Period Common Shares Outstanding
Bottom was formed around 10 and stayed for few months before started to move up.
Now let us look at how PE travelled from 2018 to till date
Current PE ratio is around 18.22.
Summary - If its a Bear market worser than 2008 then there is lot of pain left for long period.
What Is Price-to-Earnings Ratio – P/E Ratio?
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS).
The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.
P/E Ratio= Market value per share / Earnings per share
What Is Earnings Per Share – EPS?
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution. The higher a company's EPS, the more profitable it is considered.
Earnings per Share= (Net Income − Preferred Dividends) / End-of-Period Common Shares Outstanding
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