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What is the P/E ratio? An analytical tool that helps you decide if a stock is a good buy at its current price
What is the P/E ratio? An analytical tool that helps you decide if a stock is a good buy at its current price
Ali HussainDec 15, 2020, 00:22 IST
Looking at a stock's P/E ratio can tell investors if the company is over- or undervalued in relation to its peers and also to its own historical price.hocus-focus/Getty Images
The
P/E ratio (price-to-earnings ratio) measures a company's stock price in relation to its earnings per share.