PER — Trading Ideas on TradingView

Silver headed to 37.65 in April Long term fib sequence pointing to higher silver, specifically 37.65 for a 100% move, probably have some pullback there before heading to 47.50+ later this summer

PER, PBR, ROE, EPS Explained for Beginner Investors Legendary stock investor Peter Lynch once said that there’s a reason why the majority of people make money in real estate, but not in the stock market. People spend months on finding the right property, whereas in choosing the right stock to invest in, they only spend a few minutes. In this post, I'll be explaining the concepts of: 1) Price Earnings Ratio (PER) 2) Price-to-book Ratio (PBR) 3) Return on Equity (ROE) 4) Earnings per Share (EPS) by explaining the formula, what they tell us, and the best way to understand these concepts through an example. Return on Equity (ROE) So let’s start with the Return on Equity, or ROE. This measures the profitability of a company in relation to stockholder’s equity. The ROE is calculated by dividing the net income by the shareholder’s equity. Price Earnings Ratio (PER) Next, we have the price earnings ratio, or the PER. This is a good tool to determine whether a company is overvalued. The PER is calculated by dividing the current share price by earnings per share. For instance, if a company’s share price is at $100, and their earnings per share is $10, this gives them a PER of 10. Price-to-book Ratio (PBR) Then, we take a look at the price to book-value ratio, or the PBR. This measures the market’s valuation of a company relative to its book value, and is calculated by dividing the market price per share by the book value per share. Earnings per Share (EPS) Lastly, the EPS, or earnings per share. This is simply the company’s profit divided by the outstanding number of shares outstanding, and works as a good indicator of how profitable a company is. Example - Let’s take a look at an example to help your understanding. - You currently have $100,000, and you decide to open a restaurant. - You are required to pay $100,000 in deposits, and $3,000 in monthly rent. - You started this restaurant in the form of a limited liability company. - You started the company with $100,000. - Given that you issue shares that are worth $10, you issue 10,000 shares in total. - A year later, you check how well your business has done. - You find out that the restaurant did $300,000 in revenue, and after subtracting all costs, you’re left with $30,000. - With this, you can calculate the return on equity by dividing 30,000 by 100,000, which gives you an ROE of 30%. - Through the ROE, you look at how much return your own money was able to generate in profits. - From the perspective of an investor, the higher the ROE, the better. - You can also calculate the EPS, or earnings per share. - In this case, the restaurant generates $30,000 in profits. - So if we divide that by the number of shares, which is 10,000, we get an EPS of $3. - Now let’s assume that you ran the business for 3 years, and you now want to sell your business to someone else, so you can move on to do other things. - How much do you want to sell the restaurant for? After 3 years, you now have loyal customers, and it consistently generates $30,000 in profits every year. - So, you decide to sell the restaurant for $200,000 in total, with a $100,000 premium on top of the deposit. - If someone buys the restaurant for that price, it means that you and the other party agrees that the business is worth $200,000. - Now if this restaurant is sold for $200,000, that means the $10 shares you hold are sold for $20. - When we invest in stocks, this is how we make money. - With all the information above, we can calculate the PER and PBR. - If a restaurant that generates $30,000 in net profits gets sold for $200,000, the PER is 6.7. - And then, we also have the PBR. - You started the business with $100,000 of your own money, and sold it for $200,000, which gives you a PBR of 2 - For the PER and PBR, the lower the better. - A low PER means that you are buying a company that generates a lot of net profit for a cheap price. - Same for the PBR. The lower it is, the more undervalued it is. Conclusion The PER, PBR, ROE, and EPS can be great tools to help us identify whether a stock is a good buy or not. Understanding these concepts are imperative for beginner investors. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)

How To Calculate Pip Value, Risk & Trade Size Tutorial Hey Traders, in this idea we are going to break down step by step, how a professional trader calculates pip value, risk and trade size. The focus of this lesson is aimed towards helping you get an idea of how you can create your own risk management plan in order to remain consistently profitable over a long period of time. You can have the best strategy in the world and still lose consistently without a solid risk management plan. In fact, in my personal experience with teaching traders, I have found that many traders who do not succeed are actually using a profitable strategy! These traders would have made money if they followed their risk management rules but that tends to go out the window when we do not see how the numbers work out for ourselves (among many other reason). It is important that you use these calculations that I have broken down on these charts over and over again until it makes perfect sense to you and then apply them to your own trading. If you do nothing else at least make sure the numbers work for you! I hope this short tutorial helps you get started on creating your own risk management plan and please be sure to comment below with any questions you may have. If you like this tutorial please give this lesson a thumbs up and I will cover more on this topic In a future lesson. Thanks Traders, If you would like access to a spreadsheet that automatically calculates all of this for you, please request one using the link below and I will send you my personal spreadsheet for free. goo.gl Also if you have not done so please follow me at TradersNsights Facebook page as I plan to start posting daily market updates and predictions over there that may be helpful to you. www.facebook.com

PER - Longer term momentum trade from $3.79 to $5.13 & higher PER seems breaking out its long term down trend followed by consolidation. It had a big break with huge volume. And in long term it showing upward momentum. We think it has huge potential to go above $5 * Trade Criteria * Date first found- Pattern/Why- Entry Target Criteria- Break of $ Exit Target Criteria- $ Stop Loss Criteria- $ (Note: Trade update is delayed here.)

ESSX Overreaction book value/share > current price Bullish on this stock, the book value per share is 2.35 yet the price got scared down to 0.79 because management rescheduled earnings. Sort of looks like a double bottom should be formed once this anomaly is resolved.

SPHS Oversold, Filling the Gap, cash/share > share price Sophiris Bio had a Phase III drug trial test showing the drug was not effective and the market overreacted. The chart has a cash/share value (mrq) of $1.74, the float is 16.78 Million Shares (note today's volume alone is a large part of that), so with a tiny float, more cash per share on hand than the market price, and upcoming results for new Phase III results for other products, one can see why people are buying this up right now.