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  4. P/E

P/E

Beginner πŸ“± Gen-Z / Internet Slang

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

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