Our P/E was down from last year but we hope to bounce back in the next four quarters.
|EBT||Earnings before taxes|
|ISO||Incentive stock option|
|NSO||Non-qualified stock option|
|NQSO||Non-qualified stock option|
|CEO||Chief executive officer|
|CFO||Chief financial officer|
|EPS||Earnings per share|
|NYSE||New York Stock Exchange|
|FAANG||Facebook, Amazon, Apple, Netflix, Google|
Investors use a company's P/E, or Price-to-Earnings Ratio, to determine whether the company is valued correctly. A high P/E might mean a stock is overvalued, while a low P/E might mean a stock is undervalued.
P/E is calculated by dividing a company's current stock price by its EPS (earnings per share). Usually, the EPS used is an average from the last four quarters, and the calculated P/E is referred to as a trailing P/E. However, P/E can also be calculated using projected EPSes, in which case it is referred to as a forward P/E.