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Investing, in plain English
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In plain English
For every $1 Nvidia earns per year, you pay $32 for the share.
Worked example
Nvidia
NvidiaPrice$225÷Profit / share$7.03=P/E32
At $7.03 a year, it takes 32 years of profit to add up to $225 Year 12 of 32
Takeaway. A high P/E is not good or bad. It tells you how much growth other investors already expect.
The weekly brief · Issue 01
Rates held, Nvidia fell on a record quarter, and the one ratio that explains both.
S&P 500+1.8%Inside3 lessons · 2 events
MonWhat a rate cut does to your savings Lesson
TueFed holds rates. What the wording change means Event
WedP/E, PEG, PEGY: the numbers behind a price Lesson
ThuNvidia earnings. Why the stock fell anyway Event
FriDollar cost averaging, in one chart Lesson
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