P/E Ratio
Fundamental Analysis
Definition
Price-to-Earnings ratio compares a company's current share price to its per-share earnings, used to determine if a stock or market is overvalued or undervalued relative to its earnings.
Key Points
- Calculated as Price per Share / Earnings per Share
- Higher P/E may indicate overvaluation
- Compare to historical averages and peers
Quick Info
Category
Fundamental Analysis
Related Topics
valuation
earnings per share
fundamental analysis
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