price to earnings ratio

PE ratio, which is also known as price-to-earnings ratio, is the most popular indicator used by investors for stock election. Price-to-Earnings or PE ratio is calculated by dividing company’s market price of the stock by its earning per share or EPS. The best part of the P/E ratio is that it establishes a direct relationship between the bottom line of a company’s … [Read more...] about Understanding Price-to-Earnings (PE) ratio to know the valuation of stock