ECS Computech Finance Executive Interview Questions and Answers

PE ratio is a financial metric used to evaluate a company's stock price relative to its earnings per share.

• PE ratio is calculated by dividing the current stock price by the earnings per share (EPS).

• It is used by investors to determine if a stock is overvalued or undervalued.

• A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may suggest undervaluation.

• For example, if a company's stock is tradi...read more

ROE stands for Return on Equity, a financial metric that measures a company's profitability by showing how much profit a company generates with the money shareholders have invested.

• ROE is calculated by dividing net income by shareholders' equity.

• It shows how efficiently a company is using its equity to generate profit.

• A higher ROE indicates better profitability and efficiency.

• ROE can vary by industry, so it is importan...read more