Understanding the Stock P/E Ratio
The Price-to-Earnings (P/E) ratio is a financial metric used to evaluate whether a stock is overvalued or undervalued by comparing the current market price of a stock to its earnings per share (EPS). The P/E ratio is calculated as: P/E Ratio = Current Market Price per Share / Earnings per Share (EPS) Interpreting the P/E Ratio Example Table of Fictitious Companies Here’s an … Read more