- Compares common stock price per share to its earnings per share
- The higher the ratio, the more “expensive” the stock
- Higher results can indicate greater market demand
- Measure of: valuation
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Recommended Tools
One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.
