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Hi,
May I know is there any online websites that I can view the stock and P/E ratio of a stock? I appreciate any advice, thank you.
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Yahoo finance, investor relations page of the company, the stocks app in iPhone, DBS vickers.. Etc
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(07-11-2012, 10:01 AM)kctan Wrote: (07-11-2012, 08:12 AM)valuehunter Wrote: (07-11-2012, 07:39 AM)kctan Wrote: (06-11-2012, 10:50 PM)Hongwei Wrote: Yahoo finance, investor relations page of the company, the stocks app in iPhone, DBS vickers.. Etc
Thank you, Hong Wei. I went to check Yahoo Finance and noticed there is this
P/E (ttm): 5
May I know what is the ttm stands for?
trailing twelve months.
Sorry for the ignorance.. but is trailing twelve months means the past twelve months?
Yes, or in the past 4 quarters.
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Yes, TTM = trailing 12 months = past 12 months.
The difference is it factors in the latest 4 quarters of financial performance as compared to using the last FY standards.
Advantage of it is it takes into account any recent changes to the business dynamics. If let's say Company A performs well in FY11 but hit a loss in 1HFY12, TTM P/E reflects it better than historic P/E which may look cheap for the latter.
That said, P/E is still one of the many metrics used for valuation. Instead of looking into it prima facie, one should always reason out why is it such a case. I believe the market is often efficient - just not all the time.
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Thank you for the helpful comment!