The ratio of a company’s stock price (P) to its earnings per share (E). Earnings per share is approximately equal to the company’s net income divided by the number of shares it has outstanding.
A Financial Literacy Blog for All
A Financial Literacy Blog for All
The ratio of a company’s stock price (P) to its earnings per share (E). Earnings per share is approximately equal to the company’s net income divided by the number of shares it has outstanding.