Chris asked in Business & FinanceInvesting · 7 years ago

What is considered a good p/e ratio for a stock?

3 Answers

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  • Jack
    Lv 6
    7 years ago
    Favorite Answer

    P/E ratios are all over the map.

    As part of your research, you will want to compare the P/E ratio of the target company with other companies in the same sector, business, and similar size.

    Sector ratios will be more consistent. You really can not compare the P/E of say Netflix (PE over 400) with Johnson & Johnson (PE 20). Both are good companies, but they are in different sectors, are different sizes, and have much different expected growth rates.

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    6 years ago

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  • 7 years ago

    it depends on the industry....Hi tech industries have a much higher P/E than mature industries

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