What are good P/E, P/S and P/B ratios?
What are the P/E and P/S ratios?
Before we dive in, it’s important to know what “P/E” and “P/S” are.
P/E is the price to earnings ratio or the “share price/earnings per share”. The price to earnings ratio is used for evaluating companies to find out whether they are overvalued or undervalued.