Impect of low/high PE RATIO
This query is : Resolved
31 December 2009
If a company having PE Ratio is 10 and another company whose PE Ratio is 5 which one is good for the invester and how?
please elaborate the impect of PE Ratio.
please elaborate the impect of PE Ratio.
02 January 2010
A high PE ratio indicates that the stock is more expensive than the stock with lower PE. However, on the flip side, it also means that the market is giving a higher valuation to the company with higher PE due to higher growth potential of the company.
PE is not the only factor to be considered in stock selection.
PE is not the only factor to be considered in stock selection.
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