P/E Ratio
The ratio of a company's share (stock) price to the company's earnings per share.
Muhammad Azeem avatar
Written by Muhammad Azeem
Updated over a week ago

The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.

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