P/E Ratio
P/E ratio (price-earnings ratio) values a company’s current share price to its per-share earnings.
P/E ratio = Market Value Per Share/Earnings Per Share (EPS).
Usually a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.
Also known as: price multiple, earnings multiple.
Sponsored Links
Wall Street Survivor - Free Online Paper Trading
Leading virtual online trading platform. Play for free.
https://wallstreetsurvivor.com/

