Factors Affecting The Growth Of P/E Ratio
The P/E ratio is one of the most commonly used valuation metrics for stocks. The multiple is determined by the market investors and is one of the most widely used metrics to judge the quality of a stock. A high P/E denotes that investors are willing to pay more for the company's earnings and a low P/E indicates that the stock is undervalued. The P/E ratio is one of the most popular indicators used by investors to analyze the market. The P/E ratio is affected by several factors. The price earning ratio is calculated by dividing the price of a share of a company by the earnings per share. A company's earnings are one of the principal determinants of its share value. Earnings act as a base for determination. A SEBI registered stock tips provider company can be the most trustworthy for your help determining the factors that affect the Price Efficiency Ratio. The Following Factors Are: · Growth In Earnings Potential This is th...