Price-to-Earnings (P/E) Ratio
Investors, analysts, and executives widely use the Price-to-Earnings (P/E) ratio to evaluate a company’s stock price relative to its earnings. It helps them determine whether a stock is overvalued, undervalued, or fairly priced. By comparing a company’s stock price to its earnings per share (EPS), the P/E ratio provides a quick snapshot of market sentiment…
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