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Q » What is 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 evaluate a company's stock price relative to its earnings per share (EPS). It is calculated by dividing the current market price of the stock by its EPS. A high P/E ratio may indicate overvaluation or growth prospects, while a low P/E could suggest undervaluation or potential issues. It is an essential tool for investors in assessing stock value.
06 Dec, 2025
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