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What is PE?


Price to earnings. Market cap divided by profit. It is loosly associated with how long until you can make back your investment with current revenue.

If you have a business that makes $1/year after costs and taxes and are selling it for $20, your P/E is 20.


Price to earnings ratio, or P/E, is a way to value a company by comparing the price of a stock to its earnings. The P/E equals the price of a share of stock, divided by the company's earnings-per-share. It tells you how much you are paying for each dollar of earnings.



i suppose price/earnings ratio




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