Valuation - HURRICANE HYDROCARBONS LTD (HHLF:NASDAQ) Glossary
In this section you will learn how to evaluate a company's stock price relative to its peers.
What is the company's Price/Earnings Ratio compared with its peers? Why does it matter?
Now that you have looked at the company's fundamentals, growth prospects and risks, does the stock price make sense? To measure this, many investors compare a company's Price/Earnings (P/E ratio) to its industry. Companies in similar lines of businesses with similar earnings and growth prospects should have similar P/E ratios. If they don't, it could indicate the stock is undervalued or overpriced. Why look at Trailing and Forward P/E Multiples?
Current P/E Multiples (Provided by S&P)
HURRICANE HYDROCARBONS LTD
Trailing
3.3x
2001 --
Industry
Trailing
8.7x
2001
10.4x
Market
Trailing
40.1x
2001
28.4x
What does a low or high P/E indicate?
Why should you look at the Price/Sales ratio?
Many investors consider Price/Sales in addition to, or instead of the P/E ratio, especially when analyzing companies that have little or no earnings.
Price to Sales (Provided by S&P)
HURRICANE HYDROCARBONS LTD Industry Market
1.1x 1.6x 1.6x
What about growth stocks, which tend to have high P/E ratios?
To evaluate growth stocks investors often use the PEG Ratio (P/E to Growth Ratio). The PEG ratio indicates how expensive a stock is given its current price, earnings, and projected long-term growth rate. It is calculated as the P/E ratio (based on trailing 12-month earnings), divided by the 5-year projected earnings growth rate. Theoretically, the higher the ratio the more expensive the stock. In general, seek companies with lower PEG ratios than their peers.
PEG Ratio (Provided by S&P)
HURRICANE HYDROCARBONS LTD Industry Market
-- 0.6 2.7
Was haltet ihr davon ?
In this section you will learn how to evaluate a company's stock price relative to its peers.
What is the company's Price/Earnings Ratio compared with its peers? Why does it matter?
Now that you have looked at the company's fundamentals, growth prospects and risks, does the stock price make sense? To measure this, many investors compare a company's Price/Earnings (P/E ratio) to its industry. Companies in similar lines of businesses with similar earnings and growth prospects should have similar P/E ratios. If they don't, it could indicate the stock is undervalued or overpriced. Why look at Trailing and Forward P/E Multiples?
Current P/E Multiples (Provided by S&P)
HURRICANE HYDROCARBONS LTD
Trailing
3.3x
2001 --
Industry
Trailing
8.7x
2001
10.4x
Market
Trailing
40.1x
2001
28.4x
What does a low or high P/E indicate?
Why should you look at the Price/Sales ratio?
Many investors consider Price/Sales in addition to, or instead of the P/E ratio, especially when analyzing companies that have little or no earnings.
Price to Sales (Provided by S&P)
HURRICANE HYDROCARBONS LTD Industry Market
1.1x 1.6x 1.6x
What about growth stocks, which tend to have high P/E ratios?
To evaluate growth stocks investors often use the PEG Ratio (P/E to Growth Ratio). The PEG ratio indicates how expensive a stock is given its current price, earnings, and projected long-term growth rate. It is calculated as the P/E ratio (based on trailing 12-month earnings), divided by the 5-year projected earnings growth rate. Theoretically, the higher the ratio the more expensive the stock. In general, seek companies with lower PEG ratios than their peers.
PEG Ratio (Provided by S&P)
HURRICANE HYDROCARBONS LTD Industry Market
-- 0.6 2.7
Was haltet ihr davon ?
