ANALYZING THE P/E RATIO: FINDING UNDERVALUED STOCKS

Analyzing the P/E Ratio: Finding Undervalued Stocks

The price-to-earnings metric, or P/E ratio, is a key valuation gauge that investors use to assess the cost of a company's stock relative to here its earnings. A low P/E figure can signal that a stock may be cheaply priced, while a high P/E ratio suggests that the market anticipates higher earnings growth in the future. By evaluating a company's P/

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