What is better a high or low P/E ratio?
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03-06-2014, 09:19 PM
Post: #2
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A low P/E Ratio is a better value, so that could be viewed as better.
P/E stands for Price/Earnings. Price is the stock price times the number of shares outstanding. Earnings in the company profits over the last 12-months. You are receiving a lower price for stock per $ of earnings if the P/E is low. Just because a stock has a low P/E does not mean that the stock will go up, and ultimately, what you are looking for is stocks that are going to go up in price. This may very well be a stock with a high P/E that you expect will get to an even higher P/E. Ads |
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Messages In This Thread |
What is better a high or low P/E ratio? - Justin - 03-06-2014, 09:04 PM
[] - Mr. Wisdom - 03-06-2014 09:19 PM
[] - underexposed... - 03-06-2014, 09:24 PM
[] - I Like Turtles - 03-06-2014, 09:36 PM
[] - Lois Griffin - 03-06-2014, 09:38 PM
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