Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Bernardo de La Paz

(58,838 posts)
3. PE Ratio is price earnings ratio. I updated thread title (thanks) and explain a bit here
Wed Sep 24, 2025, 10:11 AM
Wednesday

Price is the price of stocks. Earnings is the last reported earnings (last four quarters). Divide the Price by Earnings to get the Ratio.

When the ratio is high (say above 23) then stocks are deemed expensive. When it is low (say around 16), then stocks are deemed cheap. Of course people have many explanations why high in one situation or another is not high and vice versa.

Recommendations

2 members have recommended this reply (displayed in chronological order):

Latest Discussions»General Discussion»If stock market Price-Ear...»Reply #3