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Shares / Re: Negative PE ratios.
« on: March 12, 2014, 11:55:50 am »
jaDEB is correct but to understand this, think of it this way.
PE ratio is the price of the share divided by the Earnings Per Share or EPS. Either of the 2 can be negative to give a negative result but as the share price cannot be negative then it must be the EPS. So negative earnings is the culprit for a negative PE ratio.
PE ratio is the price of the share divided by the Earnings Per Share or EPS. Either of the 2 can be negative to give a negative result but as the share price cannot be negative then it must be the EPS. So negative earnings is the culprit for a negative PE ratio.