ANALYZING 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 price of a company's stock relative to its earnings. A low P/E figure can signal that a stock may be a bargain, while a high P/E ratio implies that the market expects higher earnings growth in the future. By comparing a company's P/E ratio to its i