According to Alumina Limited's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 6.67428. At the end of 2007 the company had a P/E ratio of 15.7.
Year | P/E ratio | Change |
---|---|---|
2007 | 15.7 | -2.26% |
2006 | 16.1 | -43.58% |
2005 | 28.5 | 61.39% |
2004 | 17.7 | -35.87% |
2003 | 27.5 | -23.68% |
2002 | 36.1 | 84.89% |
2001 | 19.5 |
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.