A valuation ratio that compares a company’s stock price to its earnings per share (EPS). The P/E ratio is used by investors to assess the relative value of a stock and determine whether it is overvalued or undervalued.
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A valuation ratio that compares a company’s stock price to its earnings per share (EPS). The P/E ratio is used by investors to assess the relative value of a stock and determine whether it is overvalued or undervalued.