A P/E ratio is a metric that shows the relationship between a company's stock price and its earnings per share. It is calculated by dividing the company's current stock price by its earnings per share. P/E ratio is an indication of how much investors are willing to pay for every dollar of earnings. In terms of understanding the ratio, a high ratio implies that investors are willing to pay more for every dollar of earnings. It could also imply that the company is overvalued. Gotrade shows the company's P/E ratio on the Stock screen in the app.
Written by ReginaUpdated over a week ago