What is the Price / Earnings Ratio (PER)?

The price / earnings ratio or PER is calculated by dividing the market capitalization by the net income. It can also be calculated by dividing the price of a share by the net earnings per share.

Advice: the price / earnings ratio makes it possible to assess the value of a security in relation to the prices of securities of companies in the same sector: the lower the ratio, the better the stock is considered market.

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