Our Financial Analysis Success Kit is Ready!
Why you should take a look at the Financial Analysis Success Kit:
We've combined all our highly popular financial analysis tools into one megafinancialanalysiskit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:
The eBook "Learn Ratio Analysis In Minutes"

The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

A BONUS...Our eBook of "Key Financial Statement Terms"

Another HUGE BONUS...FivePart Financial Ratio Cheat Sheet Series
Learn more on our product page:
Take a LookQuick Definition
Provides a quick way to value a company, measuring how expensive the stock may be.
[sc:kit02 ]Price to Earnings Ratio Formula
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Price to Earnings Ratio
Explanation of Price to Earnings Ratio
Also called the PE or P/E ratio, the Price to Earnings Ratio compares the Market Price of Common Stock to the Earnings per Share. This ratio is a quick measure of how “expensive” the stock of a company may be.
Importance of Price to Earnings Ratio
A company’s stock may be heard as being “overvalued” – this ratio is the calculation often behind analyses like that. As the Earnings per Share increases, or the Market Price of Common Stock decrease, the ratio will look better.