Price-to-earnings ratio: Difference between revisions
WikiSysopIG (talk | contribs) Created page with "'''Price-to-earnings ratio''' ('''P/E ratio''', '''price/earnings ratio''', or '''earnings multiple''') is a financial valuation ratio that measures the relationship between a company's market price per share and its earnings per share (EPS). It indicates how much investors are willing to pay for each unit of a company's earnings and is one of the most widely used metrics in equity valuation, investment analysis, and financial reporting. The price-to-earnings rat..." |
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or | or '''20'''. | ||
This means that investors are willing to pay **US$20** for every **US$1** of the company's annual earnings. | This means that investors are willing to pay **US$20** for every **US$1** of the company's annual earnings. | ||