This is the price of a share, divided by the profit per share. It is a measure of the profitability of a corporation. Low P/E ratio means the corporation is more profitable. When the profit per share increases, the P/E ratio is reduced. When shares become more expensive because of demand on the market, the P/E ratio is increasing.
Simcountry Dictionary
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This is the price of a share, divided by the profit per share. It is a measure of the profitability of a corporation. Low P/E ratio means the corporation is more profitable. When the profit per share increases, the P/E ratio is reduced. When shares become more expensive because of demand on the market, the P/E ratio is increasing.