What does the price-to-earnings (P/E) ratio indicate?

What does the price-to-earnings (P/E) ratio indicate?

قیمت سے کمائی تناسب کیا اشارہ کرتا ہے؟
Explanation

The P/E ratio compares a company’s stock price to its earnings per share (EPS).

A higher P/E often reflects greater investor expectations for future growth and profitability.