Kids.Net.Au - Search engine for kids, teachers, parents, children and schools

Search the Internet for Kids!
Google
 
Web Kids.Net.Au
Sign Up for our Cool Newsletter!
Email:
Web Sites Encyclopedia Dictionary Thesaurus
Search
Google
 
Web
Kids.Net.Au
Encyclopedia
 
Sponsors
 
Encyclopedia > PE Ratio

Article Content

PE Ratio

The PE ratio of a stock is: 

 Price per Share
 ---------------
 Earnings Per Share

The price per share is the market price of a single share of the stock. The Earnings per share is Net Income divided by number of shares. The PE of a stock describes the price of a share relative to the earnings of the underlying asset. The higher the PE the more over valued the stock is.


All Wikipedia text is available under the terms of the GNU Free Documentation License

Link to Kids.Net.Au | About Us | Submit a question, comment or suggestion

Kids.Net.Au - kids safe portal for children, parents, schools and teachers.