what does P/E ratio tells us about the stock?
Is it significant enough?
P/E leading ration defines price of a stock with respect to its expected earnings.So high P/E ratio is always a very good indicator for a buy position of the stock.
But signifance level of the P/E ratio can always be doubted but we can always mix number of stratergies to derive at final estimations different from other similar traders ruling this world of trading.Its a theoritical concept whose application can be doubted .
I m just explaining the concepts of some crucial terms that works in financial markets.
THERE IS STRICTLY NO INDICATION TO FOLLOW THESE ACTIVITIES.NO RESPONSIBILITIES AGAINST ANYONE.Everthing is theoritical concepts based on some practical facts in lay man language.