The price/earning (P/E) ratio is another measurement that's of particular interest to investors in public businesses. The P/E ratio gives you an idea of how much you're paying in the current price for stock shares for each dollar of earning. Earnings prop up the market value of stock shares, not the book value of the stock shares that's reported in the balance sheet.
The P/E ratio is a reality check on just how high the current market price is in relation to the underlying profit that the business is earning. Extraordinarily high P/E ratios are justified only when investors think that the company's earnings per share (EPS) has a lot of upside potential in the future.
The P/E ratio is calculated dividing the current market price of the stock by the most recent trailing 12 months diluted EPS. Stock share prices bounce around day to day and are subject to big changes on short notice. The current P/E ratio should be compared with the average stock market P/E to gauge whether the business selling above or below the market average.
P/E ratios are currently running high, despite a four-year slump in the stock market. P/E ratios vary from industry to industry and from year to year. One dollar of EPS may command only a $10 market value for a mature business in a no-growth industry, while a dollar of EPS in a dynamic business in a growth industry may have a $30 market value per dollar of earnings, or net income.
To sum up, the price/earnings ratio, or P/E ratio is the current market price of a capital stock divided by its trailing 12 months' diluted earnings per share (EPS) or its basic earnings per share if the business does not report diluted EPS. A low P/E may signal an underbalued stock or a pessimistic forecast by investors. A high P/E may reveal an overvalued stock or might be based on an optimistic forecast by investors.
Title:
Educational Toy Ideas For Your Preschooler
Word Count:
519
Summary:
If you are searching for the right educational toys for your preschooler, you may be overwhelmed with all the options available. Toy manufacturers are now busier than ever, working hard to keep up with the latest trends and styles, and competing to make their toys the best and most popular among small children. Though the decision of what to buy your child can be difficult, here are several suggestions that may help you.
When choosing an educational toy, you want to be ...
Keywords:
educational toys
Article Body:
If you are searching for the right educational toys for your preschooler, you may be overwhelmed with all the options available. Toy manufacturers are now busier than ever, working hard to keep up with the latest trends and styles, and competing to make their toys the best and most popular among small children. Though the decision of what to buy your child can be difficult, here are several suggestions that may help you.
When choosing an educational toy, you want to be sure it will serve its educational purpose. You want your child to learn something while playing with a particular toy, and for that to remain a popular one with your preschooler for a reasonable amount of time. This is why you should choose carefully.
When selecting educational toys, it is also important to keep your child's interests in mind. Remember, it isn't the educational factor that will interest your child, rather the fun the toy will bring. Encourage your child to play with different toys and learn new things, but always try to give preference to the more educational preschool-level toys, whether they teach basic math or reading skills, color recognition, or just stimulate different parts of a child's developing brain. After all, these simple, educational games can often be the most entertaining.
Chalkboards are among the most popular toys for preschoolers. They are also among the oldest. And since many modern chalkboards are double-sided-- with a chalkboard on one side and a magnetic board for plastic letters on the other, this toy can also serve a dual purpose. By playing with it, your child will be able to learn the letters of the alphabet with the magnetic letters, and then be able to practice those letters on the chalkboard once this is accomplished. It also allows for free-hand drawing and hours of creative fun.
Toy pianos are also among the most popular and most beneficial toys. As shown in recent studies, children who learn music, even on the most basic level, tend to perform better in math and science-oriented subjects, and also tend to score higher on scholastic exams. Aside from that, this kind of toy is a great way for your child to be creative while making his or her very own music.
Blocks have long been among the most basic, yet most fun toys a child can own. There are many types from which to choose, from blocks that interlock, to those that simply balance on one another. Your child will have hours of fun building towers, houses, or just simply learning to stack and count.
No matter which educational toys you choose, be sure they are age-appropriate for your child. Check to be sure they don't have loose parts that could be harmful to your child, and that they aren't too complicated for his or her age and education level. You do not want your child to become discouraged by playing with a toy he or she does not understand. Also, play with your children. If you show an interest in the toys you buy, they are more likely to do the same.
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