Introduction to the price-to-earnings ratio | Finance & Capital Markets | Khan Academy

Price to Earnings Ratio (or P/E ratio). Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/valuation-and-investing/v/p-e-discussion?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/valuation-and-investing/v/earnings-and-eps?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Life is full of people who will try to convince you that something is a good or bad idea by spouting technical jargon. Most of them have no idea what they are talking about. Don't be one of those people or their victims when it comes to stocks. From P/E rations to EV/EBITDA, we've got your back! About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. You talk WAY too much, please stay on the topic.
2. where can i find each individual industry p/e ratio? bc that affects when the whole market averages it out.
3. Excellent!!!! Why didn't I come to Khan Academy for this long ago?
4. subdued lol
5. Why do they say "introduction?" What did he not explain????
6. FUCKING GREECE! They suck at being transparent and accountable.
7. Midget company?
8. Literally a life saver!! Thank you for simplifying it
9. EPS is derived from last 4 quarters, aka last full year. Thus p/e ratio reflects last years full 12 month earnings, in a ratio.
10. great video. Thank you.
11. Great video
12. Insightful video, thank you.
13. I have a question
    you mean to say in same sector companies when you are doing fundamental analysis on stocks the company with lower p/e are suitable?
14. i think your videos are really helpful. Especially for beginners like me who really need a full explanation on things. Please dont listen to those haters. They are arrogant idiots who thinks that they know everything and have no understanding towards others. Please do more video on valuation and investing. Because of your video make my learning journey is easier now.
15. Fantastic explanation…. Don't listen to the haters
    Great Job!
16. Yo can you stay on topic please, and stop going all over the place. Do you ADD? Seriously man stay on topic. Smh
17. Thank you for making this videos, i always been very interested in stock and now i can learn about it for free. I appreciate it, thank you
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19. I'm texting in class.
20. What is a CD om a bank account?, thanks.