today only for only 7 you can get 2 winning options trade alerts every month click here to see trade ideas riskfree with a 14 day refund guarantee right now apollo global management inc apo share price is at 6875 after a 171 gain moreover over the past month the stock fell by 283 but in the past year went up by 3618 shareholders might be interested in knowing whether the stock is overvalued even if the company is performing up to par in the current session check out this executives buy around 64m of 3 stocks assuming that all other factors are held constant this could present itself as an opportunity for shareholders trying to capitalize on the higher share price the stock is currently under from its 52 week high by 1519 the pe ratio measures the current share price to the companys earnings per share it is used by longterm investors to analyze the companys current performance against its past earnings historical data and aggregate market data for the industry or the indices such as sp 500 a higher pe indicates that investors expect the company to perform better in the future and the stock is probably overvalued but not necessarily it also shows that investors are willing to pay a higher share price currently because they expect the company to perform better in the upcoming quarters this leads investors to also remain optimistic about rising dividends in the future depending on the particular phase of a business cycle some industries will perform better than others compared to the aggregate pe ratio of the 3463 in the capital markets industry apollo global management inc has a lower pe ratio of 812 shareholders might be inclined to think that the stock might perform worse than its industry peers its also possible that the stock is undervalued there are many limitations to price to earnings ratio it is sometimes difficult to determine the nature of the earnings makeup of a company shareholders might not get what theyre looking for from trailing earnings