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Forum Help Price / Earnings (Kebir Blue)

Price / Earnings (Kebir Blue)

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Warren Buffett (Kebir Blue)

All worlds
21 Oct 2008 22:28Link
How do you lower the price to earnings so that investment funds will buy the shares of a corporation. I need to raise capital for the enterprise but my shares wont sell. What can i do?
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Berand (Little Upsilon)

All worlds
23 Oct 2008 03:11Link
I'm very new here, but I've found that you have to improve the profitablity of the corp, (i.e. Raise the E), so that the P/E will be lower. Then you are more likely to get the option to sell shares to the public.

Of course, any more experienced player can chime in with a better answer.
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Treasurer (White Giant)

All worlds
25 Oct 2008 19:36Link
Yes, more profits/sales will make the P/E ratio drop. P/E stands for Price to Earnings ratio. It is calculated by dividing the share price by last years earnings per share. Once the P/E gets below 75 the Investment funds will start putting in orders for your shares. Make sure you have 100% hiring at all times and a favorable tax rate. That helps as well.