PRICE/EARNINGS RATIO

The price/earnings ratio is a tool widely used by investors to evaluate whether a stock is a good current pick. In this tutorial you will learn the following about the price/earnings ratio:

What Is the Price/Earnings Ratio? Importance of the Price/Earnings Ratio External Factors That Influence the Price/Earnings Ratio Internal Factors That Influence the Price/Earnings Ratio Investors Use Price/Earnings Ratios to Pick Stocks

Let's begin with the basics.