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.