Price-to-Earnings Ratio (P/E)
The Price-to-Earnings Ratio (P/E) is a valuation metric that compares a company's share price to its earnings per share (EPS). It is used to assess how much investors are paying for each dollar of a company's earnings.
Example: Example: A company with a share price of $120 and trailing twelve months EPS of $6 would have a trailing P/E of 20.
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