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A price - earnings ratio or P / E ratio is calculated as a firm's share price compared to the income or profit earned by
A priceearnings ratio or PE ratio is calculated as a firm's share price compared to the income or profit earned by the firm per share. Generally, a high PE ratio suggests that investors are expecting higher earnings growth in the future compared to firms with a lower ratio. The accompanying table shows a portion of ratios for firms.
tableFirmPE Ratiovdots
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