Sat Mar 23, 2024 11:33 pm by globalturboThe P/E is a world-renowned ratio used by value/non-value investors and considered to be one of the most useful metrics in valuing a company. The P/E ratio works well in measuring how much each pound or dollar of earnings is worth for a particular company.
The formula to determine P/E value of a company is derived as;
Price per Share divided by Earnings Per Share
Higher P/E values are generally seen as those with greater future growth prospects, whereas lower P/E values are seen as those with lacking future growth prospects.
The P/E ratio acts as an excellent complimentary tool that should certainly be used with other metrics when evaluating a company. Find out more by clicking here Here
The formula to determine P/E value of a company is derived as;
Price per Share divided by Earnings Per Share
Higher P/E values are generally seen as those with greater future growth prospects, whereas lower P/E values are seen as those with lacking future growth prospects.
The P/E ratio acts as an excellent complimentary tool that should certainly be used with other metrics when evaluating a company. Find out more by clicking here Here
