explain p/e ratio
The price/earnings ratio or P/E is important as a measure of whether a share or an overall stock market looks like good value of not. The price (P) bit is the price of the share and the earnings (E) bit refers to the earnings per share.he price/earnings ratio or P/E is important as a measure of whether a share or an overall stock market looks like good value of not. The price (P) bit is the price of the share and the earnings (E) bit refers to the earnings per share.