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

  Search Encyclopedia

Search over one million articles, find something about almost anything!
  Featured Article

... embedded in the gyroscope. The physics of this device looks confusing at first sight, but is surprisingly simple. It can easily be understood with a litt ...

This page was created in 37.1 ms