| Pazuzu | Saturday, January 26, 2013 - 07:10 am 
Am i correct that low p/e ratio only affects the the market situation and not the tax and profit transfer?
I see some corporations has low p/e ratio with no tax and no profit transfer, the p/e does adjust with the market even if the tax and profit have been adjusted.
This ia all i want to know, because i still have bit of trouble with one corporation which is at 60.3 p/e ratio while the market value is at Pazuzu Copper 677.64B SC$. Im trying to get the p/e down instead of high.
Share market game is my goal. |
| Laguna | Saturday, January 26, 2013 - 09:22 pm
It is the other way around. P/E is influenced by your market value and your yearly profits. So, taxes affect your P/E via profits, but profit transfer does not.
If anyone sees a mistake, tell me. |
| Pazuzu | Monday, January 28, 2013 - 01:53 pm
Ok. Thanks Laguna. |
| Crafty | Monday, January 28, 2013 - 02:48 pm
P/E is influenced by your market value...
Well, is it though?
Consistent profit will raise your MV of course, as well as keeping a low P/E, so it may appear that way.
If P/E is indeed influenced by MV, then a lower profit transfer percentage will raise corp cash holding and hence assets, which should raise MV, so influencing P/E. No? |
| Laguna | Monday, January 28, 2013 - 03:05 pm
Yes, in that respect, profit transfer does affect P/E. Didn't remember about that. |
| Pazuzu | Tuesday, January 29, 2013 - 06:47 am
Well, by the looks of it, i'll have to start all over with new corporations then. I will have to put them in state first before ceo. This will be a long process.
Thanks for the responses. Have a great day. |
| Pazuzu | Wednesday, February 6, 2013 - 02:48 pm
Tax does affect the p/e ratio. As soon as i put in 30% tax, it went high. |
