P/E Ratio

September 23, 2013  |     |     |   0 Comment

P/E Ratio or Price-Earnings Ratio is a company valuation tool in which a publicly-traded company’s earnings-per-share are divided into its stock price-per-share.

Websites are also often valued and sold at a multiple of earnings/profits. So as in stocks, the P/E ratio represents that earnings multiple.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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