What is P/E ratio?
Stocks, funds & commoditiesPrice-to-earnings ratio: the share price divided by yearly profit per share. It shows how much investors pay for each $1 of profit.
Think of it like: How many years of profit you pay upfront for the business.
Real example: A share at $100 earning $5 per share has a P/E of 20.
Lesson: Stocks: owning a slice Practise it now: Who Am I? Practise it now: Safe Haven Sprint