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Q: PE Ratio ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: PE Ratio
Category: Business and Money > Finance
Asked by: dgal-ga
List Price: $2.00
Posted: 30 Jul 2002 11:34 PDT
Expires: 29 Aug 2002 11:34 PDT
Question ID: 46971
What is the PE ratio of Ford Motor Company?
Answer  
Subject: Re: PE Ratio
Answered By: mwalcoff-ga on 30 Jul 2002 11:47 PDT
Rated:5 out of 5 stars
 
Hello,

According to Yahoo! Finance, Ford Motor Co. has negative earnings for
the trailing 12 months. Therefore, a P/E ratio is not applicable.
Technically, you could say Ford has a P/E ratio of -4.76, but P/E
ratio generally is not expressed for a company that has had a net loss
for the past 12 months.
See (http://biz.yahoo.com/p/f/f.html).

I hope this answer meets your needs.

Request for Answer Clarification by dgal-ga on 30 Jul 2002 11:53 PDT
Thanks.
Wouldn't the P/E ratio technically be zero?
Can you have a negative P/E ratio?

Clarification of Answer by mwalcoff-ga on 30 Jul 2002 12:28 PDT
Well, it's hard to say, since P/E ratios are generally not expressed
for companies with negative earnings. So the ratio is not "zero" but
rather does not exist, at least in the stock pages. If you take the
price and divide it by the earnings, you get a negative number, so you
could say the P/E ratio is negative. But you won't see it that way
most places.

For more details, see
(http://invest-faq.com/articles/analy-pe-ratio.html).
dgal-ga rated this answer:5 out of 5 stars
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