Master Price-to-Earnings Ratio
One of the most popular tools that analysts use to determine whether a company shares are overvalued or undervalued is the Price-to-Earnings (P/E) ratio.
The reason why is that investors are very interested in knowing what is the present value of their future returns.
In other words, investors can evaluate a stock by determining how much they are willing to pay today for the company’s expected earnings in the future. Keep Reading