Fundamentals
24/7 AI stock market analysis with real-time data and interactive commands.
What Is a P/E Ratio?
One of the most common metrics you'll hear on Wall Street: the P/E ratio. P/E stands for Price to Earnings. It tells you how much investors are willing to pay for each dollar of a company's earnings. You calculate it by dividing the stock price by the earnings per share. For example, if a stock is trading at 100 dollars and earns 5 dollars per share, the P/E ratio is 20. That means investors are paying 20 dollars for every 1 dollar of earnings. A high P/E might mean investors expect big growth a
Market Cap Explained
Ever wonder what people mean when they say a company is worth a trillion dollars? That's market capitalization, or market cap. It's simply the total value of all a company's outstanding shares. You calculate it by multiplying the stock price by the number of shares. Companies are usually grouped by size. Mega cap is over 200 billion, large cap is 10 to 200 billion, mid cap is 2 to 10 billion, small cap is 300 million to 2 billion, and micro cap is under 300 million. Why does this matter? Larger