Price to earnings is a well-liked valuation ratio of a company’s latest share price as compared to its per-share earnings in last twelve months. Low P/E value is considered a sign that a stock is relatively cheap compared with its earnings. The average level differs across the market. Therefore, P/E value should be compared per sector or industry that is what we are going to do.
Oracle Corporation (NASDAQ:ORCL) stock is the one that maintains highest PE value of 13.79 among stocks in application software industry, beating the Microsoft Corporation’s (NASDAQ:MSFT) PE ratio of 10.38 and 12.84 of CA, Inc. (NASDAQ:CA). Oracle also leads close rivals while comparing their EPS growth this year. ORCL has maintained earnings per share growth this year at 37.82%, higher from MSFT’s 28.20% and 18.85% recorded by CA.
Recently, Hewlett-Packard Company (NYSE:HPQ) lawyer said in court that Oracle breached a clear deal when it took decision that it would no longer provide new versions of its database software compatible with HP’s Itanium-based servers.
http://www.pt-news.org/oracle-corporation-nasdaqorcl-pe-ratio-and-2012-eps-growth-higher-versus-microsoft-corporation-nasdaqmsft-and-ca-inc-nasdaqca/122974/
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