# How to Calculate 10 PER

When it comes to determining the performance of a stock, one of the most commonly used metrics is the price-to-earnings ratio (P/E ratio). This metric is used to compare the stock’s current market price to its earnings per share (EPS). The P/E ratio is often referred to as the “multiple”, as it is a multiple of the company’s EPS. The higher the P/E ratio, the more expensive the stock is compared to its earnings.
The 10 P/E ratio, also known as the 10 PER, is a measure of a stock’s performance relative to its peers. While the P/E ratio is used to compare the stock’s current market price to its EPS, the 10 PER is used to compare a stock’s current market price to the average of the 10 most recent EPS. This is done to get a better indication of the stock’s performance over a longer period of time.

## Understanding the 10 PER

The 10 PER is a measure of a stock’s performance relative to its peers. It is calculated by taking the current market price of a stock and dividing it by the average of the 10 most recent EPS. The result of this calculation is the 10 PER.
For example, if a stock is currently trading at \$50, and its 10 most recent EPS are \$1, \$2, \$3, \$4, \$5, \$6, \$7, \$8, \$9, and \$10, the 10 PER would be 5. This means that the stock is currently priced at five times the average of its 10 most recent EPS.
The 10 PER is useful for comparing a stock’s current performance to its peers. If a stock has a 10 PER of 5, it means that it is trading at five times the average of its 10 most recent EPS. If another stock has a 10 PER of 10, it means that it is trading at 10 times the average of its 10 most recent EPS. This comparison gives investors a better indication of how the stock is performing relative to its peers.

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## Factors Affecting the 10 PER

The 10 PER is affected by a number of factors, including the company’s earnings performance over the past 10 quarters, the number of shares outstanding, and the overall performance of the stock market.
Earnings Performance: The 10 PER is affected by the company’s earnings performance over the past 10 quarters. If the company has had strong earnings performance over the past 10 quarters, its 10 PER will be higher than if it had weaker earnings performance over the same period.
Number of Shares Outstanding: The 10 PER is also affected by the number of shares outstanding. If a company has a large number of shares outstanding, its 10 PER will be lower than if it has a small number of shares outstanding.
Overall Market Performance: The 10 PER is also affected by the overall performance of the stock market. If the stock market is performing well, the 10 PER will be higher than if the stock market is performing poorly.

## Benefits of Using the 10 PER

The 10 PER is a useful metric for investors as it allows them to compare a stock’s performance relative to its peers. It also provides investors with an indication of the stock’s performance over a longer period of time. Additionally, the 10 PER can be used to identify stocks that are undervalued or overvalued.

## Conclusion

The 10 PER is a useful metric for investors as it allows them to compare a stock’s performance relative to its peers. It is calculated by taking the current market price of a stock and dividing it by the average of the 10 most recent EPS. The 10 PER is affected by a number of factors, including the company’s earnings performance over the past 10 quarters, the number of shares outstanding, and the overall performance of the stock market. The 10 PER can be used to identify stocks that are undervalued or overvalued, and can provide investors with an indication of the stock’s performance over a longer period of time.