what can you determine the good condition of a company? by the price per share; or by its value in stock exchange?


1 Answer(s)


Price per share is a meaningless number. The number to focus on is the P/E ratio. This gives you an idea of the value of the share relative to its earnings.

But just P/E ratio does not reflect that a company is good. Other metrics need to analyzed such as revenue growth rate, free cash flow, net margins etc