Learn > P/E Ratio
What is P/E Ratio?
💡 P/E Ratio in One Sentence
The Price-to-Earnings (P/E) ratio measures a company's current share price relative to its earnings per share (EPS).
Deep Dive
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P/E Ratio Formula
Market Value per Share / Earnings per Share (EPS)
FAQ
What is a good P/E ratio?
Historically, the average P/E for the S&P 500 has been around 15-20.
Can P/E be negative?
Yes, if a company has negative earnings (a loss), it has a negative P/E.
