Market MakeHer Podcast

87. What Is P/E Ratio? Learn how to valuate a stock (Replay)

Jessica Inskip and Jessie DeNuit Season 2 Episode 87

How do you know if a stock is "on sale" or overpriced? It's time for a math refresher! In this replay of Market MakeHer podcast episode 59, we learn all about stock valuation and how to look at the price-to-earnings (p/e) ratio to make informed investing decisions. (We mentioned some stocks and referred to how they were performing back in October 2024 - FYI!)   

🔮 P/E Ratio Demystified

"P/E ratio is just the price divided by earnings." 

We teach you the math and give you real examples to make it make sense, but feel free to ask us a question!  

🧟‍♀️🧠 Takeaways

  • Price alone does not determine if a stock is expensive.
  • Understanding PE ratios is crucial for stock picking.
  • P/E ratio is calculated by dividing the price by earnings.
  • Market perception influences stock prices significantly.
  • Investors should consider both past and future earnings.
  • Self-directed investors need to stay informed about market trends.
  • Diversification is key in investment strategies.

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About Us
🌚🌞
Market MakeHer is an investing education podcast taught by a 15-year finance expert to her friend, a beginner investor. Our mission is to demystify the stock market and make financial literacy accessible to all self-directed investors! We teach complex investing topics in a different way - from "Her" perspective.

Important Disclosures:
Investing involves risk. There is always potential to lose money when investing in securities. Market MakeHer LLC provides educational content and resources for informational purposes only. We are not registered financial advisors & do not provide personalized investment advice. Consult with a l...

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