P/E Ratio (Little Upsilon)

What causes p/e ratio rise?

You want your P/E ration to be small. It is the Price per Earnings. To decrease the number, you have to increase earnings - make it more profitable.

Thanks.

The PE ratio is one of the most widely watched measures of valuation for both the stock market as a whole and individual stocks. Many people use it to determine whether the market (or a given stock) is "expensive" or "cheap". The calculation is very simple. You simply divide the price by the yearly earnings. One easy way to think of it is the P/E ratio is really just equal is the price divided by earnings... so:

P/E ratio = Price/Earnings

BC said it... down not up.

unfortunately you can't do much to change it in sc. the availablility of the product is the main way the p/e changes. if there's a glut in the market for a particular product, over time the corp will make less, thereby lowering profit and p/e. when the market turns, hopefully the corp will make more money. the p/e also is a factor in being able to do a ipo.