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Q » What is the price-to-earnings (P/E) ratio?
01 Nov, 2025
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A » The price-to-earnings (P/E) ratio is a financial metric used to evaluate the valuation of a company by comparing its current share price to its per-share earnings. It is calculated by dividing the market value per share by the earnings per share (EPS). A higher P/E ratio may indicate that a stock is overvalued, or investors expect high growth rates in the future, while a lower ratio may suggest undervaluation.
01 Nov, 2025
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