P/E

Price / Earnings

Short definition

P/E is equity value over net income. Leverage, tax and one-offs break the denominator; it is more fragile than EV/EBITDA.

Detailed explanation

P/E is undefined in a loss year. Diluted EPS grows the share count. Forward P/E uses forecast earnings; a miss inverts the multiple.

A high P/E assumes growth or a low Ke. Calling it “dear” without ROE and growth is incomplete (a PEG-like reading).

Why it matters for the CFO

It is the language of retail investors and some reports. In a levered name P/E can contradict the EV multiple.

How it is calculated

F/K = Özkaynak değeri / Net kâr (veya hisse fiyatı / EPS)

Variables in the formula

• P/E: Equity value ÷ net income

How to read it

P/E of 10x is a price of 10 times earnings. There is no universal fair P/E; the rate and growth regime set it.

Numerical example

Equity value 800 mn TL, net income 44 → P/E = 18.2x.

Definitions are educational. They are not investment, credit or tax advice.