Complete this sentence and explain them this le ration is a acceleration explain them
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Answer:
PART OF
How to Value a Company
INVESTING FUNDAMENTAL ANALYSIS
Price-to-Earnings Ratio – P/E Ratio
By ADAM HAYES
Reviewed By GORDON SCOTT
Updated Mar 17, 2020
TABLE OF CONTENTS
EXPAND
What Is Price-to-Earnings Ratio
P/E Ratio Formula and Calculation
Forward Price-To-Earnings
Trailing Price-To-Earnings
Valuation From P/E
Example of the P/E Ratio
Investor Expectations
P/E vs. Earnings Yield
P/E vs. PEG Ratio
Absolute vs. Relative P/E
Limitations of the P/E Ratio
Other P/E Considerations
What Is Price-to-Earnings Ratio – P/E Ratio?
The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.
P/E ratios are used by investors and analysts to determine the relative value of a company's shares in an apples-to-apples comparison. It can also be used to compare a company against its own historical record or to compare aggregate markets against one another or over time.
KEY TAKEAWAYS
The price-earnings ratio (P/E ratio) relates a company's share price to its earnings per share.
A high P/E ratio could mean that a company's stock is over-valued, or else that investors are expecting high growth rates in the future.
Companies that have no earnings or that are losing money do not have a P/E ratio since there is nothing to put in the denominator.