In order to evaluate a stock, we often look at the PE Ratio (Forward PE or Trailing PE). But how do we interpret it? A. Does having a high PE Ratio such as a Forward PE of 35 or 40, bad?
What is the PE Ratio? Price to Earnings Ratio. How to interpret PE Ratio?
When you hear people talk about stocks or the stock market, you often hear the phrase, “PE Ratio”. A. The PE Ratio is the “Price to Earnings Ratio.” To calculate the PE Ratio, you divide the price of one stock