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whompyjaw | 2 years ago

What is PE?

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s1artibartfast|2 years ago

Price to earnings. Market cap divided by profit. It is loosly associated with how long until you can make back your investment with current revenue.

If you have a business that makes $1/year after costs and taxes and are selling it for $20, your P/E is 20.

cute_boi|2 years ago

Price to earnings ratio, or P/E, is a way to value a company by comparing the price of a stock to its earnings. The P/E equals the price of a share of stock, divided by the company's earnings-per-share. It tells you how much you are paying for each dollar of earnings.

fjni|2 years ago

i suppose price/earnings ratio