Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.

So based on that, this looks cheaper.

And you're going to pay a lower Price to Earnings ratio if the company isn't growing.

looks neutral.

So in 2013 you'll be making 16.

Uh, when I started farming,

It's just a faster way of saying

Will geeks become endangered species?

This is 2009 estimates.

So let me switch colors just to ease the monotony.

Over the 15 years before the financial crisis, the growth rate of the bottom 99 percent of the income distribution was half a point slower than the averages we've been talking about before.

And going back to where we started this video, in terms of capacity utilization and what that might do to prices, this tells us that labor utilization is

If I'm paying 10 today for 2 of earnings in 2009, the Price to Earnings of 5 for Company A.

They just can't get another credit card loan or a home equity loan.

Okay.

They have here Singapore.

In those plans that offered nearly 60 funds, participation rates have now dropped to about the 60th percentile.

The proletarian infant mortality rate has dropped by 12 per cent.

And let's say Company B made 5 per share. 5 EPS, Earnings Per Share.

You want to climb through at night when the ice is frozen.

The crime rate is decreasing in Canada.

Then we can talk about what it actually means and if we have time, we can have a discussion on why a company might have a higher or lower Price to Earnings Ratio.

So just when you look at it superficially right here, when you take Price to Earnings and actually just as a little aside, whenever someone says the Price to Earnings ratio is 10, or the Price to Earnings for Company B is 4, the first thing you should ask is, what earnings are you using?

If conversely the outcome is somewhere in this green box and it isn't that unlikely after all.

And the earnings on the bank account in that year were 200.

A very low probability event is that this might happen, but it's much more likely that Oh, wait.

Low Price to Earnings ratio implies that it's cheaper.

Divided by 0.35.

Maybe it goes to 2 in 2010.

We didn't say we're going to send a man 20 percent to the moon.

When Americans go to college and marry each other, they have very low divorce rates.

Not enough examples.

Doctor, the patient is desatting.

If f(n) is in little o(g(n)), that's kind of like saying f(n) is strictly less than g(n).

Because you're getting the same earnings for a lower price.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

So a lot of people immediately will figure out the Price to

What do you know?

The birth rate has been decreasing recently.

I don't want to think about, are they good at getting low interest?

So there's some problem with these metrics now.

Today, there are 2.3 million.

The birthrate is rapidly declining in this country.

But in the last four years,

If it's growing 100 a year for 20 years, this is actually a very good deal.