Why would someone pay more money for less earnings p/e ratio
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Why would someone pay more money for less earnings p/e ratio
Generally speaking, a high P/E ratio indicates that investors expect higher earnings. However, a stock with a high P/E ratio is not necessarily a better investment than one with a lower P/E ratio, as a high P/E ratio can indicate that the stock is being overvalued.
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PE multiple tells you how much investors are willing to pay per rupee of earnings. A low PE multiple indicates that you won't be willing to pay a high price to own a stock. A higher value usually indicates that there is a willingness to pay a premium for a stock.
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