Stock Market FAQs

The Price-to-Earnings ratio = Current Share Price ÷ Earnings Per Share (EPS). It helps investors judge whether a stock is over or under-valued.

Study financial statements like balance sheet, income statement, and cash flow. Look at revenue, profits, and debt ratios.

Fundamental analysis involves evaluating a company’s financials, industry, and economy to determine its stock’s intrinsic value.

The P/E (Price-to-Earnings) ratio compares a company’s current share price to its earnings per share, often used to assess valuation.