When earnings grow, the ‘E’ increases, over time. P/E ratios primarily reflect market expectations around earnings growth rates. All else being equal, it’s better to pay a low price - but as Warren Buffett said, ‘It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.’ How Growth Rates Impact P/E Ratios

P/E of 5.46 = CN¥0.14 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.026 (Based on the trailing twelve months to June 2018.) Is A High Price-to-Earnings Ratio Good?Ī higher P/E ratio means that investors are paying a higher price for each HK$1 of company earnings. Or for China Dredging Environment Protection Holdings:

Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) See our latest analysis for China Dredging Environment Protection Holdings How Do I Calculate A Price To Earnings Ratio? That means that at current prices, buyers pay HK$5.46 for every HK$1 in trailing yearly profits.

China Dredging Environment Protection Holdings has a price to earnings ratio of 5.46, based on the last twelve months. We’ll look at China Dredging Environment Protection Holdings Limited’s ( HKG:871) P/E ratio and reflect on what it tells us about the company’s share price. This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios).

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