Investors love P/E

September 2, 2025

What does P/E tells you and why do investors value this metric this much.

So P/E generally tells you the price/earning dollar. Meaning, how expensive the business valuation is now.

Say eg: Company A has a P/E of 13. This simply means that you pay $13 for every dollar or earnings. So if the company makes 2.50c per annum per share, you will spend $32.50 to buy the 1 stock of company A.

Well, P/E also tells you something else.

P/E = Price per share/(Earnings per share)

this means, that EPS = P/E / EPS. This gives you the valuation of the EPS of the stock as of today.

In our Intrinsic value cheat sheet, we add each stock into their respective categories or niche so you can compare, given the stocks outstanding, how strong or how weak the company is and if its worth investing your money into the future of this company.

Of course, a lot of other metrics matters as well. Which we will share with our subscribers.

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