Price/Earnings ratio (P/E ratio) - The P/E ratio is a measure of the level of confidence investors have in a company (rightly or wrongly). Generally, the higher the figure, the higher the confidence. It is calculated by dividing the current share price by the last published earnings per share - where earnings per share is net profit divided by the number of ordinary shares.
Price/Earnings ratio (P/E ratio) : the p/e ratio is a measure of the level of confidence investors have in a company (rightly or wrongly). generally, the higher the figure, the higher the confidence. it is calculated by dividing the current share price by the last published earnings per share - where earnings per share is net profit divided by the number of ordinary shares.
Price/Earnings ratio (P/E ratio)