Analyzing the P/E Ratio: Finding Undervalued Stocks
The price-to-earnings metric, or P/E ratio, is a key valuation tool that investors use to assess the value of a company's stock relative to its earnings. A low P/E number can signal that a stock may be undervalued, while a high P/E ratio implies that the market forecasts higher earnings growth in the future. By comparing a company's P/E ratio to i