Can you explain the purpose of price earnings ratio?

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A company is showing a low dividend yield and high price earnings ratio, then:
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SHAIKH MOHAMMED BASHEER AHMED SHAIKH
10-July-2014

Financial Management

Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/10/04

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1 Answers

Muzammil Goundi

by Muzammil Goundi , Business Controller , Mercedes-Benz

The PE is mainly used to value a stock and helps in assessing if the stock is undervalued or overvalued.

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