Thursday, May 31, 2018

Question about PE ratio...Please help

So I am a new investor and I am trying to figure out every term that I can.

I found this one: PE ratio.

I know that is Price per earnings but there is something that is bothering me a lot.

For the company KHC (Kraft-Heinz) on many websites is around 6.5. So far so good.

The problem is that the price of a stock is (right now) around $58.8 and the earning per share of the last year (the most recent 4 quarters) is $3.6.

( you can check it on this website reference )

If you do the math for the PE ratio (price of the share divided the last (annual) earning per share) you will end up with 58.8/3.6 and the result is 16.1

Now if you check whatever website you will see that the PE ratio is 6.5

( you can check it on this website reference )

So I was wondering what's the problem here? I tried with several other companies and I had no problems but I don't understand what's wrong with KHC.

P.S. At the end I found this website that is listing the Earning per share at $8.95 and now the math works, but I still don't understand why some website report a so huge difference. Am I missing something?

( you can check it on this website reference)



Submitted May 31, 2018 at 02:08AM by ycram3 https://ift.tt/2L6FTfG

No comments:

Post a Comment