Simcountry is a multiplayer Internet game in which you are the president, commander in chief, and industrial leader. You have to make the tough decisions about cutting or raising taxes, how to allocate the federal budget, what kind of infrastructure you want, etc..
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Understanding the P/E Ratio

Topics: Help: Understanding the P/E Ratio


Saturday, January 26, 2013 - 07:10 am Click here to edit this post
Am i correct that low p/e ratio only affects the the market situation and not the tax and profit transfer?

I see some corporations has low p/e ratio with no tax and no profit transfer, the p/e does adjust with the market even if the tax and profit have been adjusted.

This ia all i want to know, because i still have bit of trouble with one corporation which is at 60.3 p/e ratio while the market value is at Pazuzu Copper 677.64B SC$. Im trying to get the p/e down instead of high.

Share market game is my goal.


Saturday, January 26, 2013 - 09:22 pm Click here to edit this post
It is the other way around. P/E is influenced by your market value and your yearly profits. So, taxes affect your P/E via profits, but profit transfer does not.

If anyone sees a mistake, tell me.


Monday, January 28, 2013 - 01:53 pm Click here to edit this post
Ok. Thanks Laguna.


Monday, January 28, 2013 - 02:48 pm Click here to edit this post
P/E is influenced by your market value...

Well, is it though?

Consistent profit will raise your MV of course, as well as keeping a low P/E, so it may appear that way.

If P/E is indeed influenced by MV, then a lower profit transfer percentage will raise corp cash holding and hence assets, which should raise MV, so influencing P/E. No?


Monday, January 28, 2013 - 03:05 pm Click here to edit this post
Yes, in that respect, profit transfer does affect P/E. Didn't remember about that.


Tuesday, January 29, 2013 - 06:47 am Click here to edit this post
Well, by the looks of it, i'll have to start all over with new corporations then. I will have to put them in state first before ceo. This will be a long process.

Thanks for the responses. Have a great day.


Wednesday, February 6, 2013 - 02:48 pm Click here to edit this post
Tax does affect the p/e ratio. As soon as i put in 30% tax, it went high.

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