Please read below discussion posts and provide each response in 50 to 75 words
Post1#
The price-earnings ratio is used to show current investor demand for a company share (Rahman & Shamsuddin, 2019). On the same note, the higher the ratio, the higher the price of a stock. In contrast, the lower the ratio, the lower the price of a stock. Ideally, the price-earnings ratio helps investors to understand the trends and patterns of whether the markets are overvaluing or undervaluing a stock.
Different companies have different price-earnings ratio ranges that are considered normal for their industry group. For example, technological companies sell at a larger price-earnings ratio as compared to the textile mill. Before an investor can invest, they must consider what is going on in the world. For example, if the economy is in a recession or there is a global health crisis, corporate earnings can greatly decrease. On the other hand, if the economy is in a boom, corporate earnings can continue to increase. Therefore, after careful consideration of the performance of the economy, an investor can decide to invest or not to invest in a specific company (Gill, Khurshid, Mahmood, & Ali, 2018).
Ford is one of the companies that trade in NYSE. Since the decade began, the company has invested heavily in research and innovation to help the company keep up with competition from rivalry firms. After the outbreak of the global pandemic, Fords stock decreased in value from reduced demand in the automotive market and tensions from China. This is because the company relies heavily on China for manufacturing parts of their vehicles. In July, the company experienced a loss of 35 cents a share on automotive revenue of $16.6 billion (Garcia, 2020). Ford Company is yet to implement ways to stop the long-term downward since 2013. Ideally, most investors focused on top growth stock with superior fundamentals will not buy Ford stock with the ongoing global pandemic.
Post#2:
Price earning ratio is also known as P/E ratio. Price earning ratio is defined as the ratio where value of the company can be measured by current share price relative to its earnings of per-share. In other words price earnings ratio also known as earnings multiple or price multiple. This ratio analysis is mainly used by the analysts and investors to calculate the relative value of the organization shares. this ratio analysis used to compare the organization to its old historical record or to other organization in the market.
If the P/E ratio of the organization is higher then analysts anticipate that it’s value will grow in future. Current P/E ratio if we take an average the it will be twenty to twenty five times more than earnings. P/E ration calculation will helps analyst to determine the price of the share accurately presents projected earning per share. Formula for calculating P/E ratio = market value per share/Earnings per share. By using P/E ratio investors can expect the performance of the organization and can determine whether it is undervalued or overvalued.
Barings BDC is one of NYSE company. The company’s stock report includes details such as key market data, the information of the company, details about the business the company involves in, overview of the average price per share, forecast data, ratios, and statistics in relation to finance, income statement, cash flow summary, a summary of data filed in a year and the ownership of stock. All these details compiled in one single document makes a stock report. However, the most crucial aspects of the common stock report are current market data for the stock and the current analyst’s data financial information from the company filled in the last 4 quarters of a financial year clearly showing the Securities and Exchange Commission. These aspects carry all crucial details of a common stock report.
