The price-to-earnings (P/E) ratio, calculated by dividing the market price per share by earnings per...
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The pricetoearnings PE ratio, calculated by dividing the market price per share by earnings per share EPS measures the market's valuation of a company's earnings. A higher PE ratio indicates higher investor confidence and expectations of future growth, while a lower ratio suggests undervaluation or lower growth prospects. This ratio is important for investors to assess the relative value of a company's shares and make informed investment decisions. It helps in comparing the valuation of different companies within the same industry.
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