Economics REALLY URGENT!!!!!
posted by Em on .
Hi my assignment is due like TODAY.
I need three simple criterion to evaluate whether it is good to buy shares in a company. So far I have the profability of shares, the potential for a share to be blue-chip but I am lacking a third.
I'm stuck because I have already evaluated the varying stock prices twice in two different ways, is there anything else I can do? I also looked at the volatility of the market in blue-chip criterion
HELP! What else can I use?
Here are some criteria I consider.
Has the company steadily increased its sales and EPS?
Is the PE in a reasonable range?
What kind of future does this company have?
Okay. Thank-you. Quick question though, what are the EPS and PE?
Oh, my! You need to learn these abbreviations if you're taking an econ class and studying the stock market.
EPS = earnings per share
PE = price earnings ratio. That's the price divided by the earnings. For instance, a PE of 18 means that stock purchasers are paying 18 times the earnings for a share of that stock.
Okay I have the EPS as earnings per share but is PE price earning ratio or private equity?
Okay, thank-you for all your help! I think I'll use the PE