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

Jamesport, New York

... mi²). 11.4 km² (4.4 mi²) of it is land and 8.6 km² (3.3 mi²) of it is water. The total area is 42.82% water. Demographics As of the census of ...