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Quick and easy way to find out if a company is making a profit
Views: 420 To find out if a company is profitable, simply look at its P/E value. P/E is abbreviation for Price to Earnings Ratio. If you buy a share for $10, and the P/E is 14, it means that it would take the company 14 years to earn back $10 from the $10 you invested in it, given its current balance sheet. I consider P/E of 14 or less to be a good ratio. Higher numbers are risky. If you see the value of -, then it means that the company is not making any profit. If the company is …
