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Using PE Ratio For Stock Assessments by Ariaa123(f): 3:20pm On Feb 14, 2020 |
WHAT IS PE RATIO AND WHAT MAKES IT A BIG DEAL? Though far from wholly dependable and pre-calculated bulls’-eyeshot, PE ratio has delivered near favorable results on most occasions. Investors use the PE ratio to understand if a stock is performing on an investment basis or a speculative basis. It is a metric to gauge the attractiveness of a company’s stock price. In accounting terms, a PE ratio is the price investor is paying for USD 1 profit earned by the company. Here you get the mathematics formula to calculate PE RATIO for your business. |
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