The price to earnings ratio, or P/E ratio, helps you understand if a stock is fairly priced. It compares the stock price to how much profit the company earns. How It Works The P/E ratio is calculated by dividing the stock price by the earnings per share (EPS). P/E = Price per Share ÷ Earnings per Share If a stock is trading at 50 dollars and the company earns 5 dollars per share, the P/E ratio is 10. That means you are paying 10 dollars for every 1 dollar the company earns each year. What the P/E Ratio Tells You A low P/E (for example, 8 or 10) may suggest the stock is cheap or undervalued A high P/E (for example, 30 or 40) may suggest the stock is expensive or investors expect big growth However, different industries have different average P/E ratios. A tech company like Nvidia might have a P/E of 35, while a bank like Westpac might have a P/E around 12. Example Company A has a share price of 20 dollars and earns 2 dollars per share. Company B has a share price of 40 dollars and earns 1 dollar per share. Company A: P/E = 20 ÷ 2 = 10 Company B: P/E = 40 ÷ 1 = 40 Company A is cheaper in terms of earnings. But Company B might be growing faster, which explains the higher P/E. Key Takeaways The P/E ratio compares stock price to company earnings A lower P/E may signal better value, but context matters Use the P/E ratio to compare companies in the same industry It is a useful starting point, not a complete answer
When it comes to SEO, there isn't a magic formula to instantly send your site off to the #1 search result on Google. But there are some basic principles you should follow for a wonderful starting point. Here are the top 5 SEO practices to start with: #1 Write for people, not for search engines Always write original, interesting, high quality site content that's error free and relevant to your site. Search engines like Google can easily detect content that is duplicated from elsewhere online, that contains grammatical errors, or that is stuffed with keywords. #2 Add a blog to your site and use rich media To engage your site visitors and blog readers, create posts that include non-textual media like photos, videos, or original visualizations (infographics). Having that extra content (especially if it's captivating) will increase the time users spend on your site as well as the likelihood they will share your site with their own community. #3 Offer a positive user experience throughout your site Google will know if you're using your site to aggressively advertise your service, or if you're being too pushy. Always aim to offer site visitors a pleasant experience on your site. That means clear content, support when needed, and always an option to go back. #4 Create a network of internal links (but don't overdo it) Add links between different pages of your site and your blog, but try to follow a process that feels organic rather than heavy linking meant just for search engine crawlers. Link between pages that make sense, for example, on your services page, link a certain industry specific term, and link it to a blog post you wrote about it, that gives more information on that term. #5 Always check your site's Core Web Vitals Core Web Vitals are a standard site performance standard initially created by Google. The report shows site owners how their site pages perform 'for real,' how long it takes for site visitors to load site pages, and it offers ways to fix issues, if there are any.