price to earnings
Stock value metric
Price to earnings is a ratio comparing a company's stock price to its earnings per share, used to gauge whether a stock is overvalued or undervalued.
A high P/E suggests investors expect future growth; a low P/E may indicate a bargain or trouble.
The tech sector's price to earnings ratios have historically run higher than utilities.
Often abbreviated P/E.
- PE ratioStock valuation metric
- valuationAssessment of monetary worth
- market valuationCalculated corporate worth
- fair valueReasonable exchange price
- multipleConsisting of many parts
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