Trying to understand the fundamentals Hey guys i'm pretty new to this, but going over the 2015 year end results it states CXR earnings per share is $4.38/per share. So if we are currently trading at $35 stock price that means the p/e ratio is 8. Isn't a p/e ratio of 8 a good thing? Is there anything else I need to look at or may have missed?
I'm assuming there is also the debt which is not revealed in the p/e calculation. Is there a formula or way to calculate true value of the company with it's debt based on 2015 results and then see what real or fair value would be for the company?
Thanks ahead of time!