P/E Ratio's ?

Question

explain a -30 p/e ratio

Answer 1

As a P/E ratio is nothing more than the price per share of a company's stock divided by the earnings per share of the company, a P/E of -30 indicates that for that time period the company lost some money.  For example, if a company had a price of $60 a share, and lost $2 a share during the period, it would have P/E of -30.  However, negative P/E ratios have no real meaning or usefulness, and are typically displayed by most reporting firms as "N/A".

Answer 2

You can't have a negative P/E.  That is if you mean price to earnings ratio.  If earnings are negative (i.e. company had a net loss of income), then the P/E is N/A (not applicable).

Are you sure the P/E is negative?

Answer 3

It is NM! (not meaningful!). It may depend where in the business life cycle the comapny is in.