What Is a P/E Ratio
What Is a P/E Ratio The P/E ratio, or Price-to-Earnings ratio, is a financial metric used to evaluate the valuation of a company's stock. It's calculated by dividing the current market price per share of a company's stock by its earnings per share (EPS). Mathematically: Ratio P/E=Market Price per Share/Earnings per Share Here's a breakdown of its components: Market Price per Share: This is the current trading price of one share of the company's stock…