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What does the P/E ratio measure?
Suggested Answer: A
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28 comments · newest first
BR
Brittni
2 days ago
I feel confused about this one.
SH
Shantell
7 days ago
Agreed! A) makes the most sense.
SE
Serita
12 days ago
I think it's A) Price/Earnings. That's the standard definition.
AN
Anglea
17 days ago
Good choice! It’s crucial for investment decisions.
TH
Theresia
23 days ago
Makes sense. I’ll stick with A then.
ED
Edna
28 days ago
Right! It helps assess if a stock is over or undervalued.
OZ
Ozell
1 month ago
Exactly! It shows how much investors pay for each dollar of earnings.
AN
Anglea
1 month ago
B is incorrect. P/E is about price, not profit.
TH
Theresia
1 month ago
I’m not so sure. What about B) Profit/Earnings?
ED
Edna
2 months ago
Agreed! It’s a key metric for valuing stocks.
OZ
Ozell
2 months ago
I think it’s A) Price/Earnings. That’s the standard definition.
TE
Tequila
2 months ago
Yeah, P/E is crucial for stock analysis.
EL
Elly
2 months ago
I hope everyone knows this for the exam!
BR
Brigette
2 months ago
Right, A is the way to go. Simple and clear.
LA
Lazaro
2 months ago
B is tempting, but it's not correct.
MI
Micah
3 months ago
Definitely A. It helps assess company value.
EV
Evangelina
3 months ago
I feel confident about that too. It's a key metric.
RE
Refugia
3 months ago
Agreed! A makes the most sense.
FR
Frank
3 months ago
I think it's A) Price/Earnings. That's the standard definition.
TA
Tanesha
3 months ago
Really? I always thought it was about estimated yield.
TO
Toi
4 months ago
No way, it's definitely Price/Earnings.
MA
Martha
4 months ago
Wait, I thought it was Profit/Earnings?
ER
Erasmo
4 months ago
Totally agree, it's A for sure.
KA
Kandis
4 months ago
It measures Price/Earnings!
ZO
Zona
4 months ago
I definitely recall that the P/E ratio is related to price and earnings, but I can't remember if it's specifically A or something else.
LE
Levi
6 months ago
I feel like I might be mixing up the definitions. Wasn't there something about profit in the context of P/E ratios?
MA
Marleen
6 months ago
I remember practicing a question about financial ratios, and I think the correct answer is A) Price/Earnings.
BE
Bette
6 months ago
I think the P/E ratio stands for Price/Earnings, but I'm not entirely sure if that's the only interpretation.