【where are youngevity products manufactured】Don’t Sell SORIL Infra Resources Limited (NSE:SORILINFRA) Before You Read This
Thewhere are youngevity products manufactured goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we’ll show how SORIL Infra Resources Limited’s (
NSE:SORILINFRA
) P/E ratio could help you assess the value on offer.
SORIL Infra Resources has a P/E ratio of 63.7
, based on the last twelve months. That is equivalent to an earnings yield of about 1.6%.
View our latest analysis for SORIL Infra Resources
How Do I Calculate SORIL Infra Resources’s Price To Earnings Ratio?
The
formula for P/E
is:
Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Or for SORIL Infra Resources:
P/E of 63.7 = ₹390.95 ÷ ₹6.14 (Based on the year to March 2018.)
Is A High Price-to-Earnings Ratio Good?
A higher P/E ratio means that investors are paying
a higher price
for each ₹1 of company earnings. That is not a good or a bad thing
per se
, but a high P/E does imply buyers are optimistic about the future.
How Growth Rates Impact P/E Ratios
Earnings growth rates have a big influence on P/E ratios. Earnings growth means that in the future the ‘E’ will be higher. That means even if the current P/E is high, it will reduce over time if the share price stays flat. Then, a lower P/E should attract more buyers, pushing the share price up.
SORIL Infra Resources shrunk earnings per share by 47% over the last year. But EPS is up 4.4% over the last 3 years. And EPS is down 17% a year, over the last 5 years. This growth rate might warrant a below average P/E ratio.
How Does SORIL Infra Resources’s P/E Ratio Compare To Its Peers?
We can get an indication of market expectations by looking at the P/E ratio. As you can see below, SORIL Infra Resources has a much higher P/E than the average company (16.9) in the commercial services industry.
NSEI:SORILINFRA PE PEG Gauge January 2nd 19
That means that the market expects SORIL Infra Resources will outperform other companies in its industry. Shareholders are clearly optimistic, but the future is always uncertain. So investors should always consider the P/E ratio alongside other factors, such as
whether company directors have been buying shares
.
Remember: P/E Ratios Don’t Consider The Balance Sheet
The ‘Price’ in P/E reflects the market capitalization of the company. Thus, the metric does not reflect cash or debt held by the company. Theoretically, a business can improve its earnings (and produce a lower P/E in the future), by taking on debt (or spending its remaining cash).
Such spending might be good or bad, overall, but the key point here is that you need to look at debt to understand the P/E ratio in context.
Story continues
How Does SORIL Infra Resources’s Debt Impact Its P/E Ratio?
Net debt totals 25% of SORIL Infra Resources’s market cap. That’s enough debt to impact the P/E ratio a little; so keep it in mind if you’re comparing it to companies without debt.
The Bottom Line On SORIL Infra Resources’s P/E Ratio
SORIL Infra Resources’s P/E is 63.7 which is way above average (17.2) in the IN market. With a bit of debt, but a lack of recent growth, it’s safe to say the market is expecting improved profit performance from the company, in the next few years.
When the market is wrong about a stock, it gives savvy investors an opportunity. If the reality for a company is better than it expects, you can make money by buying and holding for the long term. We don’t have analyst forecasts, but shareholders might want to examine
this detailed historical graph
of earnings, revenue and cash flow.
You might be able to find a better buy than SORIL Infra Resources. If you want a selection of possible winners, check out this
free
list of interesting companies that trade on a P/E below 20 (but have proven they can grow earnings).
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
View comments
(责任编辑:Focus)
- StockBeat: Virus Derails Intu's Rescue Plan
- FTC Sending More Than $470K to People Duped by My7Network, ‘Bitcoin Funding Team’ Scams
- Some J.Crew customer accounts hacked last year, company says
- Euro zone manufacturing collapses in April as virus spreads -PMI
- ESSA Bank & Trust Forms Relationship with Ameriprise Financial to Expand Financial Planning and Investment Services
- Is It Too Late To Consider Buying KBC Group NV (EBR:KBC)?
- HSBC adds former co-CEO of world's biggest hedge fund Bridgewater Associates to board
- Taylor Monahan on Crypto’s Divergent Possibilities in 2020
- Oil's Recovery Could Take Decades, Not Years
- Baker Hughes Snaps Up Compact Carbon Capture For Energy Transition Path
- Helius Medical Technologies, Inc. to Present at Upcoming Investor Conferences in November
- Snapchat Ousts Trump’s Account From Discover Section
- Upstate New York could be getting a Soho House
-
Summary “Canada Cardiac Rhythm Management Devices Market Outlook to 2025” is a comprehensive databoo ...[详细]
-
Trintech Extends Reporting Capabilities in Its Adra Suite with the Launch of Adra Analytics
Gain Meaningful Insights with Complete Visibility into Your Financial DataDALLAS, TX / ACCESSWIRE / ...[详细] -
How Does Duluth Holdings's (NASDAQ:DLTH) P/E Compare To Its Industry, After The Share Price Drop?
To the annoyance of some shareholders,Duluth Holdings(NASDAQ:DLTH) shares are down a considerable 33 ...[详细] -
Knowles (KN) Q1 Earnings Beat Estimates, Revenues Down Y/Y
Knowles CorporationKN reported lackluster first-quarter 2020 results, with earnings and revenues dec ...[详细] -
Facebook warned it may lose a key seal of approval for ad measurement - WSJ
May 1 (Reuters) - Facebook Inc is at risk of losing a key seal of approval that gives companies conf ...[详细] -
JPMorgan (JPM) Signs Deal to Acquire Fintech Start-up 55ip
JPMorgan’s JPM asset management division — J.P. Morgan Asset Management — has signed an agreement to ...[详细] -
DCP Midstream to Participate in Investor Conferences
DENVER, Dec. 01, 2020 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE: DCP) announced that Wouter van Ke ...[详细] -
Car rental firm Hertz gets more time from lenders to avoid bankruptcy
(Reuters) - Struggling car rental company Hertz Global Holdings Inc said on Tuesday its lenders have ...[详细] -
Trump's coronavirus stimulus is still evolving. Here's what it should include, experts say
By David LawderWASHINGTON (Reuters) - U.S. President Donald Trump said he will ask Congress for a pa ...[详细] -
The Gross Law Firm Announces Class Actions on Behalf of Shareholders of WORX, CLNY and CCL
NEW YORK, NY / ACCESSWIRE / June 4, 2020 /The securities litigation law firm of The Gross Law Firm i ...[详细]
Glencore commits to net zero emissions by 2050
Endurance International (EIGI) Q3 Earnings and Revenues Surpass Estimates
- SHAREHOLDER ACTION NOTICE: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Align Technology, Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
- DCP Midstream to Participate in Investor Conferences
- Why looting, protests and COVID-19 haven't pounded the stock market
- ValOre Initiates Multi-faceted Optimization Testwork at Pedra Branca and Receives Preliminary Platsol™ Metallurgical Recoveries of 93.4% for Palladium and 95.3% for Platinum
- Memgen Announces Addition to Board of Directors
- Coronavirus fears spark 'panic buying' of toilet paper, water, hand sanitizer. Here's why we all need to calm down
- Worldwide Artificial Intelligence in Energy Industry to 2024 - Key Drivers, Challenges and Trends