Price-to-Earnings P E Ratio: Definition, Uses, Formula, Calculation, Types, Factors, Limitations
The Price-to-Earnings (P/E) Ratio compares a company’s stock price to its earnings per share (EPS). It helps investors understand a company’s value and market expectations. Simply, it shows how much you need to pay for each unit of the company’s current or future earnings. The PEG ratio measures the relationship between the price/earnings ratio and earnings …