## PE Ratio: A Tool Every Stock Investor Must Know
When the stock market declines and becomes volatile, many investors start looking for opportunities to enter positions. But the question is, are current prices truly cheap or expensive? When will the investment yield returns? To answer these questions scientifically, the most widely used tool is **PE or PE Ratio**, which is a key indicator favored by (Value Investors).
## What is the PE Ratio and Why Is It Important?
The PE Ratio (Price to Earnings Ratio) is a ratio comparing a stock's price to its net earnings per share. This figure tells us
View OriginalWhen the stock market declines and becomes volatile, many investors start looking for opportunities to enter positions. But the question is, are current prices truly cheap or expensive? When will the investment yield returns? To answer these questions scientifically, the most widely used tool is **PE or PE Ratio**, which is a key indicator favored by (Value Investors).
## What is the PE Ratio and Why Is It Important?
The PE Ratio (Price to Earnings Ratio) is a ratio comparing a stock's price to its net earnings per share. This figure tells us