PRICE:EARNINGS GROWTH RATIO
29 March 2017 By PDSNET
Capitec’s average EPS percentage growth over that period of 13 years is 37,9% per annum. Its current P:E ratio is 23,73 – and this enables us to calculate the P:E Growth ratio by dividing its P:E by its average EPS Growth – 23,73/37,9 = 0,63. If the P:E Growth is below 1 it is worth looking at and may be under-priced. Ratios above 1 are on the expensive side and should be viewed with caution.