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About me - Martin Chapman

About me

Martin is a Fellow of The Institute of Chartered Accountants in Ireland; holds a degree in Economics and Germanic Studies from Trinity College in Dublin; and has worked as an Equity Fund Manager with responsibility for over USD 1.5 billion.

Featured article by Martin Chapman

Personal Finance > Stock Market Price to earnings ratio (P/E ratio) explained: 3 of 9

Why write about a Price to Earnings Ratio? Why? ... because the PE Ratio is the most important of all stock valuation tools. It is not only popular but if properly used can be extremely effective as well. Essentially the PE Ratio calculates the "Payback Period" of an investment. This article looks at the effect of Growth on the PE and discusses the limitations of its use. INTRODUCTION The Price/Earnings Ratio ("PE") is used by investors to assess how many years it will take them to get the value of their investment back. Assuming that the earnings of the company are not growing and that th...
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