cookie

This site uses cookies to provide you with a great user experience. By visiting monetamarkets.com, you accept our cookie policy.

Allow all
top icon

This website is operated by Moneta Markets Ltd, which is not authorised or regulated by the UK Financial Conduct Authority (FCA) and does not offer or promote services to UK residents. Access to this website is restricted in the UK and the content is not intended for distribution to, or use by, any person located in the UK. If you believe you have reached this website in error, please exit the page now

P/E Ratio (Price/Earnings Ratio)

BBack

Back to Glossary

Description

A valuation ratio of a company’s current share price compared to its per-share earnings.

The P/E Ratio compares a company’s current share price to its per-share earnings, providing insight into whether a stock is overvalued or undervalued. A high P/E might suggest investors expect future growth, while a low P/E could indicate undervaluation or skepticism about future earnings. It’s a fundamental tool for stock valuation and investment decision-making.

Start Trading in 3 Simple Steps

1
REGISTER

Open a live account and start trading in just minutes.

2
FUND

Fund your account using a wide range of funding methods.

3
TRADE

Access 1000+ instruments across all asset classes

open chat