is it better to have a higher or lower p e ratio 
many investors say buying shares in companies with a lower p e ratio is better because you are paying less for every dollar of earnings a lower p e ratio is like a lower price tag making it attractive to investors looking for a bargain in practice however there could be reasons behind a company s particular p e ratio for instance if a company has a low p e ratio because its business model is declining the bargain is an illusion 