What Is P/E Ratio And Why It Is Important

Well P/E Ratio is the price-earnings ratio and is a company’s share price to their earnings per share. The ratio is used to value the company and find out how much they are valued. P/E ratio helps investors determine the values of stock markets compared to the amount the company makes. It’s like the measuring stick of stocks to compare whether or not the company’s stock is overvalued or undervalued. So basically it is like how much you pay to get $1 out of the company.[wpvideo rLYPdyrq data-temp-aztec-id=”d3163a07-1c0a-418d-8783-219e5e8c6d05″]