Meaning of P/E Ratio
Rajiv Singh, Student (University), United Kingdom, Member
No, it does NOT mean a good stock, nor a bad one. It just means how much a company is earning per share.
How strong the stock of a company is, also depends upon the volume of stock
a company is using to trade.
When the company's P/E ratio is low this means it is generating a low income per share. However, how much total earnings it accumulates can be calculated by:
Earning per share * total volume traded.