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Eureka Correspondence

Price-earnings ratios and understanding Eureka share recommendations.
By · 25 Feb 2015
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PE ratios

I was wondering if you could publish some of your great graphs on relative PE values.  With a good 10 per cent rise in the market in the last month, are PE ratios being tested. This would particularly apply to high yielders – Telstra and the banks.

Alan

Editor's response: Thanks for your letter. You might be interested in our recent articles about valuing stocks: Are we valuing stocks correctly? (February 9) and The valuation debate: My call (February 25). If you're interested in seeing the PE ratios of individual companies, the company search function on Yahoo Finance offers this information.

Buy calls

Please explain to me your current Buy recommendation on ANZ.

The latest price is $34.90 and you have under "price" $31.28 and "projected price" $37.91. Can you explain what this $31.28 and $37.91 means?

Vincent

Editor's response: Thanks for your letter. On the Eureka share recommendations page, the "recommendation" umbrella includes four components:

Call: Buy/Hold/Sell

Price: The price the stock was trading at on the day we published the call to buy, hold or sell the stock

Projected price: The price we expect the stock to reach within 12 months

Risk: High/Low/Medium.

The "latest price" column lists the latest price a stock traded at. 

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