What is the PER (Price to Earnings Ratio) and why is it important?

The PER measures how many times the price of a stock is higher than its earnings. For example, if a stock costs $100 and its annual earnings are $10.

When to use the PER in an investment?

Good for evaluating stable companies with consistent earnings.

Useful for comparing companies within the same industry.

Does not work well on companies that do not generate profits (startups or in cyclical sectors).

It is not useful on its own, it must be combined with other indicators such as ROE, debt and revenue growth.

Do you know any companies with a high PER?