The price-to-earnings ratio can help investors assess a stock’s value, albeit with limitations. Some people are “numbers people,” meaning they like when they can solve problems with a concrete number. A numbers person might be attracted to the price-to-earnings ratio, since it’s a mathematical formula to help assess the value of a company’s stock. This ratio can illustrate how much investors are paying for each dollar of earnings.Unfortunately for people looking for a numbers-only answer, the ratio alone doesn’t...See more