Active equity investors would describe the effort and hours that go into fundamental analysis on company earning and income statements, sector analysis, competitor analysis, and company news as time-consuming. The price to earnings, or PE, ratio is a widely used stock evaluation criteria. The major purpose of a company centres on earning a profit, or in the stock market parlance, earnings. For many stocks, the primary factor in the determination of the share price represents the amount of earnings the company will earn or manages to earn. Many investors use the relationship between the share price and earnings in their stock research and selection process.
To read about the companies that outperformed their FY212 earnings within the first 9 months of FY13...
SUBSCRIBE the March 2013 issue of Wealth Insight now.