Definition

Investors use a company's P/E, or Price-to-Earnings Ratio, to determine whether the company is valued correctly. A high P/E might mean a stock is overvalued, while a low P/E might mean a stock is undervalued.

Origin

slang.net

Related Terms

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See “P/E” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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