5 Easy Facts About KGV Described
of a firm – for each dollar the corporate earns. Canonically, It truly is calculated as The existing cost for any share of a firm divided through the former 12 months of earnings.That said, it's harmful to oversimplify the power of the P/E ratio. Reduced P/E stocks are certainly not automatically safer than high P/E types, Crowell says. "P/E is