What is P/E Ratio?
Price-Earnings Ratio is a ratio of a company’s current equity price compared to its per-share earnings. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to stocks with lower P/E. However, it is usually more useful to compare the P/E ratio of one stock to other stocks in the same industry, to the market in general or against the stock’s own historical P/E.
