Episode 23

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

The P/E is essentially a measurement of how much the market is willing to pay to access a company’s earnings.

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!