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Q » Explain price-to-earnings (P/E) ratio.
06 Dec, 2025
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A » The price-to-earnings (P/E) ratio is a financial metric used to assess the relative valuation of a company's stock. It is calculated by dividing the market price per share by the earnings per share (EPS). A higher P/E ratio may indicate that a stock is overvalued, or investors expect high future growth, while a lower P/E suggests undervaluation or slower growth prospects.
06 Dec, 2025
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