pe ratio Meaning: Get to Grips With Forex Trading

Estimated read time 5 min read

The Price/Earnings (P/E) Ratio is a commonly used metric in the forex market for analyzing stock prices and evaluating a company’s stock. The P/E Ratio is calculated by dividing the stock price per share by the company’s earnings per share. It is commonly used to measure the relative value of a company’s stock to its peers in the market. The higher the P/E ratio, the more expensive the stock is compared to its peers. Investors use the P/E ratio to better understand how different companies in the market are valued and to compare investment opportunities.