The price to earnings ratio is a measurement often used to determine stock valuation. In short, P/E is used to measure what the market is willing to pay for a company based on its earnings. The trailing P/E for technology & telecommunications companies operating in the software (system & application) market was approximately 92.4. This meant that an investor would be willing to pay 92.4 dollars (or currency used) for every one dollar made through the companies earnings.
Another formula that is used by investors to measure the value of an industry or potential target company for acquisition is the enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA).
Trailing and forward price to earnings ratio (PE ratio) in the technology & telecommunications sector in Western Europe 2024, by industry
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Leonard N. Stern School of Business. (January 5, 2024). Trailing and forward price to earnings ratio (PE ratio) in the technology & telecommunications sector in Western Europe 2024, by industry [Graph]. In Statista. Retrieved November 21, 2024, from https://www.statista.com/statistics/1028379/price-earnings-in-the-technology-and-telecommunications-sector-in-europe/
Leonard N. Stern School of Business. "Trailing and forward price to earnings ratio (PE ratio) in the technology & telecommunications sector in Western Europe 2024, by industry." Chart. January 5, 2024. Statista. Accessed November 21, 2024. https://www.statista.com/statistics/1028379/price-earnings-in-the-technology-and-telecommunications-sector-in-europe/
Leonard N. Stern School of Business. (2024). Trailing and forward price to earnings ratio (PE ratio) in the technology & telecommunications sector in Western Europe 2024, by industry. Statista. Statista Inc.. Accessed: November 21, 2024. https://www.statista.com/statistics/1028379/price-earnings-in-the-technology-and-telecommunications-sector-in-europe/
Leonard N. Stern School of Business. "Trailing and Forward Price to Earnings Ratio (Pe Ratio) in The Technology & Telecommunications Sector in Western Europe 2024, by Industry." Statista, Statista Inc., 5 Jan 2024, https://www.statista.com/statistics/1028379/price-earnings-in-the-technology-and-telecommunications-sector-in-europe/
Leonard N. Stern School of Business, Trailing and forward price to earnings ratio (PE ratio) in the technology & telecommunications sector in Western Europe 2024, by industry Statista, https://www.statista.com/statistics/1028379/price-earnings-in-the-technology-and-telecommunications-sector-in-europe/ (last visited November 21, 2024)
Trailing and forward price to earnings ratio (PE ratio) in the technology & telecommunications sector in Western Europe 2024, by industry [Graph], Leonard N. Stern School of Business, January 5, 2024. [Online]. Available: https://www.statista.com/statistics/1028379/price-earnings-in-the-technology-and-telecommunications-sector-in-europe/
