What is considered a good p/e ratio for a stock?
- JackLv 67 years agoFavorite 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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- underexposed...Lv 77 years ago
it depends on the industry....Hi tech industries have a much higher P/E than mature industries