The P/E Ratio (Price-to-Earnings Ratio) is a crucial financial metric used to evaluate the valuation of a company's current share price relative to its per-share earnings. It helps investors determine if a stock is overvalued, undervalued, or fairly valued.
A comprehensive guide to understanding the Price-to-Earnings (P/E) Ratio, including its definition, formula, types, examples, historical context, and practical applications.
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