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Company Analysis

Is it pricey? Check the PER

The simplest gauge of whether a price is cheap or pricey vs. profit.

2026.06.03·2 min·
#PER#valuation#basics

PER is 'price ÷ earnings per share.' It shows how many times the price is compared to the profit the company makes. A bigger number means 'pricier relative to profit.'

This company22x
Sector avg15x
Market avg12x
Example
Compare against the sector and market average. (Educational example)
Quick check

A high PER usually means what?

Next lessonFinancial statements at a glance
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