The stock market showed a PE for BluarCo equal to 17. What does PE mean?

Question

Quizplus · Accepted Answer

PE stands for price-earnings ratio, which is a valuation ratio that compares a company's stock price to its earnings per share. It is calculated by dividing the market price per share by the earnings per share. A higher PE ratio indicates that investors are willing to pay more for each dollar of earnings, which typically reflects higher growth prospects or a positive outlook for the company.

The Stock Market Showed a PE for BluarCo Equal to 17