What is P/E Ratio?
Fundamental AnalysisBeginner
The Price-to-Earnings (P/E) ratio divides a company's share price by its earnings per share, showing how much investors pay for each pound of profit. A P/E of 15 means you're paying £15 for every £1 of earnings. A high P/E suggests growth expectations; a low P/E may indicate undervaluation or problems.
Related terms: EPS Overvalued Undervalued Growth Stock Value Stock
Try it on ChartsView