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5 fois les profits

English translation: 5 times earnings (p/e)

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
French term or phrase:5 fois les profits
English translation:5 times earnings (p/e)
Entered by: Vincent SOUBRIE
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09:25 Jan 30, 2004
French to English translations [PRO]
Bus/Financial - Finance (general)
French term or phrase: 5 fois les profits
Dear friends,

Could any of you help me understand the meaning of the expression "à 5 fois les profits" or "á 8.5x les bénéfices" in these two examples:

A 8.5x les bénéfices pour une croissance à venir de 15 à 20% sur les deux prochaines années, le titre offre une évaluation extrêmement attractive.

Il est difficile de croire que Sun Microsystems et Liquidation World se sont transigés en 1994 à 5 fois les profits!

A simple explanation will be welcome. Thank you.
Valentín Hernández Lima
Spain
Local time: 22:32
une solution possible
Explanation:
il existe un ratio financier qui calcule le cours de l'action divisé par le bénéfice/profit net.
C'est la ratio 'Price-to-Earnings'

Donc ici, le cours du titre mutliplié par 8.5 donne le bénéfice net par action.

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Note added at 2004-01-30 09:46:41 (GMT)
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price to earnings ratio
The most common measure of how expensive a stock is. The P/E ratio is equal to a stock\'s market capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period. The value is the same whether the calculation is done for the whole company or on a per-share basis. The higher the P/E ratio, the more the market is willing to pay for each dollar of annual earnings. The last year\'s price/earnings ratio (P/E ratio) would be actual, while current year and forward year price/earnings ratio (P/E ratio) would be estimates, but in each case, the \"P\" in the equation is the current price. Companies that are not currently profitable (that is, ones which have negative earnings) don\'t have a P/E ratio at all. also called earnings multiple or (P/E ratio).
Selected response from:

Vincent SOUBRIE
France
Local time: 23:32
Grading comment
My appreciation to every one of you.
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +35 times earnings
Marian Greenfield
5 +2Quintupled its profits
xxxAlex Zelkind
3 +2une solution possible
Vincent SOUBRIE


  

Answers


14 mins   confidence: Answerer confidence 5/5 peer agreement (net): +2
Quintupled its profits


Explanation:
Hola, Valentin
Doubled its profits
Tripled its profits
Quadrupled...
Quitupled...

Saludos cordiales

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Note added at 2004-01-30 09:43:27 (GMT)
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QuiNtupled, sorry

xxxAlex Zelkind
Native speaker of: Native in RussianRussian
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
agree  nothing: profits are five times higher
1 min
  -> Thank you

agree  RHELLER
6 hrs
Login to enter a peer comment (or grade)

16 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +2
une solution possible


Explanation:
il existe un ratio financier qui calcule le cours de l'action divisé par le bénéfice/profit net.
C'est la ratio 'Price-to-Earnings'

Donc ici, le cours du titre mutliplié par 8.5 donne le bénéfice net par action.

--------------------------------------------------
Note added at 2004-01-30 09:46:41 (GMT)
--------------------------------------------------

price to earnings ratio
The most common measure of how expensive a stock is. The P/E ratio is equal to a stock\'s market capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period. The value is the same whether the calculation is done for the whole company or on a per-share basis. The higher the P/E ratio, the more the market is willing to pay for each dollar of annual earnings. The last year\'s price/earnings ratio (P/E ratio) would be actual, while current year and forward year price/earnings ratio (P/E ratio) would be estimates, but in each case, the \"P\" in the equation is the current price. Companies that are not currently profitable (that is, ones which have negative earnings) don\'t have a P/E ratio at all. also called earnings multiple or (P/E ratio).


Vincent SOUBRIE
France
Local time: 23:32
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 23
Grading comment
My appreciation to every one of you.

Peer comments on this answer (and responses from the answerer)
agree  xxxBourth: Except that here I think we've got the inverse of the PER, i.e. the current profits per share multiplied by x gives you the cost of the share. So all things being equal, you recoup your investment in x years (12 - 20% p.a.).
26 mins

agree  Giulia Barontini
15 hrs
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48 mins   confidence: Answerer confidence 5/5 peer agreement (net): +3
5 times earnings


Explanation:
it is quite common to talk about companies' shares being trading at x times earnings

IBGC - Instituto Brasileiro de Governança Corporativa
... (Who's buzzing about stocks trading at five times earnings?) For a ... The answer may
lie in another fact about them: On average, insiders own half their shares. ...
www.ibgc.org.br/ibConteudo.asp?IDArea=177&IDp=128 - 13k - Cached - Similar pages

Stocks picks by the pros - Sep. 30, 2003
... It's trading at five times earnings for an earnings yield of 20 percent versus the ... Shares
of CenterPoint Energy (CNP: down $0.25 to $9.13, Research, Estimates ...
money.cnn.com/2003/09/30/pf/investing/propicks/ - 52k - Cached - Similar pages

IHT: The Chinese Paradox: A Few High-Risk Stocks Might Make a ...
... I do not know of any cheaper oil shares in the world. They are trading at five
times earnings with fat dividend yields, so what is wrong with that? ...
iht.com/articles/21725.html - 13k - Cached - Similar pages

BankruptcyNews.org::News articles & research on earnings yield
... Stocks picks by the pros [Sep 30, 2003]: It's trading at five times earnings for
an ... nonlisted equivalent of the forward earnings yield on shares, finally seem ...
finance.za-news.com/news/earnings_yield.html - 13k - Cached - Similar pages

TheStreet.com: Cash Drawer's Still Full at Register.com
... Divided among the 42.8 million fully diluted shares, the cash and ... from the stock --
the company has no debt -- and it's trading at five times earnings targets. ...
www.thestreet.com/tech/internet/1368402.html - 45k - Supplemental Result - Cached - Similar pages



    25 years in the business, most of manager of translations at an investment bank
Marian Greenfield
Local time: 17:32
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 215

Peer comments on this answer (and responses from the answerer)
agree  Vincent SOUBRIE
10 mins

agree  xxxGuy Demers: p/e is the thing alright
38 mins

agree  agtranslat: Absolutely, nice week-end.
23 hrs
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