Exploring the Basics: What is the Market Value of a Share of Stock Divided by the Net Income Per Share Called?

Have you ever heard of the market value of a share of stock divided by the net income per share? It’s a finance term that may sound intimidating, but it’s actually a straightforward concept. This value is known as the price-to-earnings (P/E) ratio and is an essential metric used by investors to evaluate the relative … Read more