Decoding the P/E Ratio: Finding Undervalued Stocks
The price-to-earnings ratio, or P/E ratio, is a key valuation gauge that investors use to assess the value of a company's stock relative to its earnings. A low P/E figure can signal that a stock may be cheaply priced, while a high P/E ratio implies that the market expects higher earnings growth in the future. By analyzing a company's P/E ratio to