Value Factors

Price-to-Earnings

This is undoubtedly the most popular value factor and, for many investors, the one true faith. It compares the price you pay per share compared to the earnings during the last 12 months. It's calculated as follows:

Price-to-Earnings Ratio = Share Price Diluted EPS excl. extra items

In the scorecard, we show the P/E for the selected stock. We also calculate the median P/E for all stocks, the company's sector, industry group and industry. Finally, we include the percentile so you can easily compare a company to its peers. For more information, click here.


Related Articles

In our screens:

  • O'Shaughnessy Trending Value

    In the fourth edition of his bestselling value quant book 'What works on Wall Street', James O'Shaughnessy devised anew screen which is called "the top stock-market strategy of the past 50 years".. more...

In our scorecard manual:

  • Value Factors

    A company can be cheap overall, but how does it compare to the selected stock universe and its peers?. more...