PE Ratio

Price-to-Earnings Ratio

High PE  vs  Low PE

Best PE Ratio To Buy Stock

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PE Ratio plays a crucial role in evaluating the valuation of a Stock.

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High PE

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Investors are okay to Pay for Company Earning.

Expectation High Growth In Stock.

Low PE

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Shows stock value is Undervalue.

Low Growth In Stock.

Best PE Ratio To Buy Stock

Best PE Ratio To Buy Stock

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Actually there is no defined "Good" PE Ratio.

But.....

But range 10 to 25 consider good to buy stock, expecting potential in stock.

How To Calculate PE Ratio?

Divide the market price per share by the earnings per share (EPS) of the company.