What is as PE Ratio?

Short bite sized learnings around finance and fintech with AI assisted content overseen by Sub11 

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Short bite sized learnings around finance and fintech with AI assisted content overseen by Sub11 

A P/E ratio, also known as price-to-earnings ratio, is a financial metric used to determine the relative value of a company's stock price compared to its earnings per share (EPS).

In simpler terms, it is the price an investor is willing to pay for each dollar of a company's earnings.

A high P/E ratio indicates that investors have high expectations of the company's future growth potential, while a low P/E ratio implies lower expectations.

P/E ratios are one of many tools used by investors to evaluate a company's financial health and investment potential.