In this episode, I’ll teach you an equation to help you determine whether a company’s stock is under-or over-valued: the price-to-earnings (or P/E) ratio. What does the P/E ratio mean and how do you use it? Tune in to find out!
What is Price-to-Earning (P/E) Ratio?
The P/E ratio is the price of a company share divided by company earnings per share
About Dr. Lobo
Stocks4Docs is hosted by Dr. Viveta Lobo, a practicing emergency medicine physician. Growing up, the world of finances, stocks, and investing held no natural interest for her. She focused her energy on pursuing medicine as a career, leaving her with little time for anything else.
Growing up, the world of finances, stocks, and investing held no natural interest for her.
After almost ten years in practice, she found herself busier than ever, managing a full-time practice, two small kids, and a household. As a frontline worker during the COVID-19 pandemic, she was challenged with the hard realization that her financial future and freedom were not in her control.Learn More
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- Value Investing: The Circle of Competence posted on March 24, 2021