| What is price-to-earnings analysis? |
|
|
|
|
|
|
|
|
|
|
|
| A
Stock’s P/E Ratio is |
||||||||||
 |
||||||||||
| the
Ratio of a Stock’s Price (P) to Its |
||||||||||
 |
||||||||||
| Expected Future
Earnings Per Share (EPS) |
||||||||||
| Example:
P/E = 25.61 |
||||||||||
|
||||||||||
| Meaning:
Investors Pay $25.61 for Each |
||||||||||
|
||||||||||
| $1.00 of the
Company’s Earnings |
||||||||||