P/E ratio
Share price divided by earnings per share.
A P/E of 20 means investors pay $20 for each $1 of yearly earnings. Compare P/Es within an industry; across industries they mean different things.
Share price divided by earnings per share.
A P/E of 20 means investors pay $20 for each $1 of yearly earnings. Compare P/Es within an industry; across industries they mean different things.
Educational content. Not investment advice.