The price/earnings ratio is used for which kind of evaluation?
A)Evaluating shares in a company from an investor's perspective
B)The overall profitability of a company
C)The ability of a company to pay its non-current liabilities
D)The ability of a company to pay its current liabilities

Question

Quizplus · Accepted Answer

The price/earnings ratio is a valuation metric used to evaluate the attractiveness of an investment opportunity. It measures the price of a share relative to the earnings per share, making it a popular tool for evaluating investment opportunities from an investor's perspective.

The Price/earnings Ratio Is Used for Which Kind of Evaluation