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P/E

P/E (Price/Earnings)

 

This ratio shows the relation between the Market Capitalization and the net profit yearly values of the company. It is focused to the price of the security.
The lower the value, the better. Besides, the value should be compared to the average P/E value of the sector the company in. 
 

Calculation:

P/E = Market Cap / Net Profit TTM

See Also

Ratios