How To Use Price-to-earnings ratio In A Sentence
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That valuation was much higher than the price-to-earnings ratio of 52 at Nasdaq-listed rival business-to-business search engine Global Sources Ltd. and the 177 P/E ratio of Chinese-language Internet-search provider Baidu. com Inc.Mr. Lai said he expects bargain hunters to sell the "overshot" Alibaba. com and use the funds to buy market laggards.
Doubts on Alibaba.com?
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All of these companies have estimated 2006 price-to-earnings ratios below 20 and an expected long-term annualized earnings growth of at least 10%.
Rising Earnings Estimates
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The company will need to substantially increase its earnings to justify its high price-to-earnings ratio, or the stock price will drop.
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