Category: Investing
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Why the Price-to-Earnings (P/E) Ratio May Not Be a Good Investment Indicator
Introduction The price-to-earnings (P/E) ratio is one of the most widely used metrics in stock market analysis, helping investors assess whether a company’s stock is overvalued or undervalued relative to its earnings. It is calculated by dividing a company’s current share price by its earnings per share (EPS). However, while P/E can provide a snapshot…