A company’s price-to-earnings ratio, or PE ratio, is a single number that packs a lot of punch, and one of the most common ways to value a company’s stock shares. But what is it, and what makes it so important? What is price-to-earnings ratio? PE ratio compares a company’s current stock price to its earnings...
The article Price-to-Earnings Ratio: PE Ratio Formula and Definition originally appeared on NerdWallet.
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