Does H. Lundbeck A/S's (CPH:LUN) P/E Ratio Signal A Buying Opportunity?
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll look at H. Lundbeck A/S's (CPH:LUN) P/E ratio and reflect on what it tells us about the company's share price. H. Lundbeck has a P/E ratio of 14.26, based on the last twelve months. That is equivalent to an earnings yield of about 7.0%.
Check out our latest analysis for H. Lundbeck How Do You Calculate H. Lundbeck's P/E Ratio?
The formula for price to earnings is:
Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Or for H. Lundbeck:
P/E of 14.26 = DKK243.6 ÷ DKK17.08 (Based on the trailing twelve months to June 2019.)Is A High Price-to-Earnings Ratio Good?
A higher P/E ratio implies that investors pay a higher price for the earning power of the business. That is not ...