What Is the P/E Ratio? And When Does It Mislead?
The P/E ratio divides stock price by earnings per share — but it breaks for unprofitable companies, cyclical earnings, and cross-sector comparisons. Here is what it actually tells you.
The P/E ratio divides stock price by earnings per share — but it breaks for unprofitable companies, cyclical earnings, and cross-sector comparisons. Here is what it actually tells you.