If you want to analyze a stock correctly, one of many ways is studying the price to earning ratio. In essence, the price-to-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive $1 of that company's earnings. This is why the P/E is sometimes referred to as the price multiple because it shows how much investors are willing to pay per dollar of earnings.

#stockmarket #stocks #stockstobuy #wallstreet #growthstocks #investingtips #investing