Importance of Price Earnings Ratio
Write down the importance of Price Earnings Ratio?
Expert
The importance of Price earnings Ratio is it assists investor in deciding whether or not to purchase the shares of specific company at a specific market price. Higher the P/E good is it for the company. If P/E ratio is less than the management must be more particular in knowing the cause of descend as it can influence the company's place in the market.
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