What is PE Ratio? | Price to Earning Ratio Explained

What is a P/E Ratio? | Price to Earning Ratio Explained

Price to earnings ratio, also known as PE ratio, is the most commonly used valuation parameter to evaluate stock price in the market.

It is calculated as – Price Per Share / Earnings Per Share. It denotes the number of times the market is willing to pay to the company’s earnings.

As a valuation parameter, a low PE stock is interpreted as an undervalued stock, while a high PE stock is interpreted as a richly valued stock.

#PricetoEarning #Pricepershare #PEStock #Kalkine



 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and