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A valuation ratio of a company’s current share price compared to its per-share earnings.
The P/E Ratio compares a company’s current share price to its per-share earnings, providing insight into whether a stock is overvalued or undervalued. A high P/E might suggest investors expect future growth, while a low P/E could indicate undervaluation or skepticism about future earnings. It’s a fundamental tool for stock valuation and investment decision-making.
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