How to read a stock quote like an analyst

A stock quote packs a lot of information into a small space. The price and day change tell you current sentiment, but the deeper numbers tell you about the business.

The Price-to-Earnings (P/E) ratio compares a company's share price to its earnings per share, giving a sense of how expensive the stock is relative to its profits. Market capitalisation — price multiplied by total shares outstanding — indicates the company's overall size.

The 52-week high and low show the trading range over the past year, useful context for understanding whether a stock is trading near its historical peak or trough.

This article is for educational purposes only and does not constitute investment advice.