Let's break this down 📖
Price divided by earnings
The price-to-earnings ratio, or P/E, compares a stock's price with its earnings per share. A P/E of 20 roughly means investors pay $20 for each $1 of annual earnings per share.
The price-to-earnings ratio, or P/E, compares a stock's price with its earnings per share. A P/E of 20 roughly means investors pay $20 for each $1 of annual earnings per share.