p/e values

[deepete]

When checking the FA on companies sometimes the p/e ratio is expressed as a minus fugure, would this imply that a company is very undervalued.

On the same topic, what does S G & A mean on the financial page, is it sales,? and advertising or am i barking up the wrong tree.

thanks
Peter

 

[Satori]

When checking the FA on companies sometimes the p/e ratio is expressed as a minus fugure, would this imply that a company is very undervalued.

PE Ratio = Price/Earnings, so if a company has a share price of £10 and has earnings of £2/share it'll have a PE ratio of 5.

If the company made a loss of £2 per share it would have a PE ratio of -5 (£10/-£2.00).

On the same topic, what does S G & A mean on the financial page, is it sales,? and advertising or am i barking up the wrong tree.

Selling, General and Administrative. Usually in relation to expenses that aren't anything to do with the production process.

 

[deepete]

very clear

thanks Satori