The Price-to-Earnings (P/E) Ratio | Basic Investment Terms #6

The Price-to-Earnings (P/E) Ratio | Basic Investment Terms #6

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This video is about the Price-to-Earnings Ratio. This ratio can be summarized as: the amount you are willing to pay for every 1$ unit of EPS of the company. Learn how to interpret this as it can become a useful tool when comparing stocks, but be certain to take into account the sector, industry, market and debt status of these companies (don’t compare apples to oranges!) Cheers!!

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