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P/E (Price/earnings ratio)

Tue, 03/13/2007 - 12:16 — admin

P/E (Price/earnings ratio)

A measurement of a company's value as expressed by the stock market. P/E is a company's stock price divided by its net income per share. When a company has a high P/E, that typically means investors are willing to pay a premium for its stock in anticipation that net income will continue to grow at a certain pace. Low P/E also could signal a company is viewed negatively by investors. (Cingular)


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