There are a number of indicators in the stock description. Price–earnings ratio is one of my favourite 💞
What does it portrays though?
- effectively shows the number of years of earnings at which company is valued given the current level of the share price
- shows how much an investor is willing to pay for the stock of the company for each dollar of the company’s earnings
No more. Unfortunately 😒
The S&P500 P/E is 42 these days 😵 it seems a bit scary, isn’t???
#p_e #pe
#sp500 #theory