Are you using the past 12 months earnings?

They're going to make 0.35 in 2009 as well.

So this is trailing 12 months.

I didn't see any hope for myself.

Yet, I don't know what to take up, I need some advice from you.

You could also have forward earnings.

The view for the country's future is bright.

It's hard to compare one Price to Earnings in one industry to another.

And how they were going to create demand was through search ads, social media, stadium promotions.

It's closer to a bank account that Company B, sure it made 5 in earnings, but that is risky.

Kill the goose that lays the golden eggs.

This was the earnings of the company last year, or the last 12 months.

Obviously a 6 Price to Earnings of 20 times 2013 earnings isn't as good as a 6 Price to Earnings of 2010, because earnings in the future aren't worth as much as earnings today.

Forms of organization can have a profound impact on human nature.

So a plus b have to be equal to 50.

It's just 10 because one, this is a nice round number.

How is it that you make money?

Have you seen the latest figures, children?

Profitable.

Because when someone says earnings, are those the earnings last year?

The price here, Company B was more.

It was 10.

So if you recognise the Revenue for the service you actually did that month, that 400

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

The reason why you are willing to pay a higher Price to

And B is expected to make 4 per share.

Maybe Abby made 50 and Ben earned 0.

No job, no money, no security, no prospect.

And what's left over for the equity?

What does that tell us?

They are things that have value.

The earnings I just said, this is actually what happened to the company.

Cash is a asset because you can use it to buy stuff and get people to do stuff for you

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

We all know if you've watched the present value videos, money in the future, earnings in the future are worth less than earnings today.

The price to 2008 earnings for Company B is 4.

But I just want to give you the gist of what's happening.

This is really important to pay attention to, because so many people say, oh, a company made this much.

We learned that in our first video.

We talked about the potential ways to charge

And if we see how they graphed things here, on the vertical axis, what we normally associate with the y axis, they graphed Abby's earnings.

Abby earned 10 more than Ben.