Price Earnings Ratio
Price Earnings Ratio
DEFINITION
The Price/ Earnings Ratio or P/E ratio or PER is a ratio used to value a company. This measures its current share price relative to its per-share earnings. The price-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings. Indication on how much traders should pay for a stock based on its current earnings.
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Arizona Member
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