What does a P/E ratio of 12.4 mean?

What does a P/E ratio of 12.4 mean?

Here we will explain how a price-to-earnings (P/E) ratio of 12.4 is calculated and what it means in terms of valuation.

P/E ratio is calculated by dividing a company's market value per share by a company's earnings per share (EPS). Thus, a P/E ratio of 12.4 means that one company's share is trading at 12.4 times the company's earnings per share.

A stock with a P/E ratio of 12.4 is often considered a fairly valued stock. A P/E ratio of 12.4 probably indicates an established company with stable earnings. A P/E ratio of 12.4 suggests that the stock is reasonably priced based on its current earnings. It indicates a balance between risk and reward.

P/E Ratio Meaning
A P/E ratio of 12.4 is not all we have information about. Enter another P/E Ratio of a stock to see what it could mean!

What does a P/E ratio of 12.41 mean?
Here is more P/E ratio information for you. Check it out!