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Fundamental Analysis
30 cards covering P/E, DCF, free cash flow, margins, and every ratio a value investor needs to know. Tap each card to reveal the answer.
Fundamental Analysis — 30 cards1 / 30
Fundamental Analysis
P/E Ratio
Tap to reveal definition
Price divided by Earnings Per Share. Tells you how much investors pay for every $1 of earnings. If a stock trades at $100 with $5 EPS, its P/E is 20×. The S&P 500 historical average is roughly 15–20×.
Example
A P/E of 10× is 'cheap' relative to the market average; a P/E of 50× reflects high growth expectations.
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