How to Find best stock
Update: 2025-05-25
Description
What it tells you:
The P/E ratio shows how much investors are willing to pay for each dollar of a company’s earnings.
A high P/E may indicate that investors expect high growth in the future.
A low P/E might suggest the stock is undervalued or that the company is facing difficulties. What it tells you:
The P/B ratio compares a company’s market value to its book value (net asset value).
A P/B < 1 may mean the stock is undervalued (you’re paying less than the company’s net worth).
A P/B > 1 often suggests the market expects future growth or profitability beyond the current assets.
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