- What is MoscowExchange P/E?
- P/E (TTM) is 6.42.
- Which multiples are known for MOEX?
- P/E, P/B, P/S, ROE, ROA, P/FCF.
- What P/E shows
- How many years of earnings the current price represents: share price divided by earnings per share over twelve months. A low value does not by itself mean a bargain, because the market may already expect profits to fall. When a company makes a loss, the ratio is not calculated.
- How P/B differs from P/E
- P/B compares the price with book equity rather than with earnings. It is the main yardstick for banks and insurers, whose balance sheets consist of money and financial assets. A company built on brands and technology has little equity on its books, so a high P/B says little on its own.
- Why EV/EBITDA is used
- It takes debt into account: the numerator is company value including net debt, the denominator is earnings before interest, tax and depreciation. That lets you compare companies with different debt loads. It is not calculated for banks, for which debt is raw material rather than financing.
- How to read ROE and ROA
- ROE is profit on shareholders' capital, ROA is profit on all assets. A high ROE achieved with heavy debt is less reliable than the same ROE without it, so read the two together. Look at several years: one good year with a one-off gain lifts the figure without changing the business.
- What to compare with
- With the company itself a few years ago and with shares of the same sector on the same market. Comparing a bank with an oil company means little: the balance sheets and the risks differ. Before comparing, check that the figures use one reporting standard and cover one period.
