@zimbuckapp: 📚 WHAT IS A P/E RATIO? The price-to-earnings (P/E) ratio shows how much investors pay for every $1 of a company's annual earnings — it is the share price divided by earnings per share (EPS). 🔢 The maths — a $100 stock with $5 EPS has a P/E of 20x, so investors pay $20 for each $1 of earnings 📈 Higher P/E — can signal investors expect strong future growth 📉 Lower P/E — can signal a cheaper valuation, or that investors expect trouble ahead A P/E only makes sense in context: compare companies in the same sector, and never judge a stock on this one number alone. #PERatio #Investing #LearnFinance #FinanceEducation #StockMarket #Zimbuck Read the full blog/news on Zimbuck: https://zimbuck.com/posts/2240 Join the conversation on Zimbuck — the finance social platform for traders & investors: https://zimbuck.com