Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

price-earnings ratio

Read a random definition: core rights

A quick definition of price-earnings ratio:

Price-earnings ratio: This is a way to measure how much a company's stock is worth compared to how much money the company makes. It's like looking at the price of a toy and how much allowance you get in a week. If the toy costs a lot more than what you make in a week, it might not be a good buy. The same goes for stocks. If a stock's price is a lot higher than the company's earnings, it might not be a good investment.

A more thorough explanation:

The price-earnings ratio (P/E ratio) is a financial metric used to evaluate a company's stock price. It is calculated by dividing the current market price of a stock by the earnings per share (EPS) of the company over the last year.

For example, if a company's stock is currently trading at $50 per share and its EPS for the last year was $5, then the P/E ratio would be 10 ($50/$5).

The P/E ratio is often used by investors to determine whether a stock is overvalued or undervalued. A high P/E ratio may indicate that a stock is overpriced, while a low P/E ratio may suggest that a stock is undervalued.

However, it is important to note that the P/E ratio should not be used as the sole indicator of a stock's value. Other factors, such as the company's financial health, growth potential, and industry trends, should also be considered.

Overall, the P/E ratio is a useful tool for investors to evaluate a company's stock price and make informed investment decisions.

price/cost analysis | price-erosion theory

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.