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July 31, 2021
Price-to-earnings Ratio Explained for Investors | P/E Ratio Details
Investing With Christy
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The price to earnings ratio, also known as the P/E ratio, is an important number to value a stock. This video is the price-to-earnings ratio explained for investors and will show you how to use this ratio in your fundamental analysis. The P/E Ratio tells us how many times above earnings are we paying to own a share of the stock. Learn when to use the price-to-earnings ratio and what other ratio is better for valuation in different situations.
There are two price-to-earnings ratios. The trailing P/E ratio and the forward P/E ratio.
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