How Do I Calculate the P E Ratio of a Company?
When the CAPE ratio is low, it means that expected future returns from the stock market are likely to be high. But when it is high, the stock market returns in the coming years will likely be low or price to earnings ratio formula even negative. It is common for stocks that are growing rapidly to have a high PE ratio. When you see EPS or PE ratio for a stock on a finance website, then it is usually the…