What does a P/E ratio of 12.61 mean?

What does a P/E ratio of 12.61 mean?

Here we will explain how a price-to-earnings (P/E) ratio of 12.61 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 12.61 means that one company's share is trading at 12.61 times the company's earnings per share.

A stock with a P/E ratio of 12.61 is often considered a fairly valued stock. A P/E ratio of 12.61 probably indicates an established company with stable earnings. A P/E ratio of 12.61 suggests that the stock is reasonably priced based on its current earnings. It indicates a balance between risk and reward.

P/E Ratio Meaning
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