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Why is the P/E ratio important in estimating the value of stocks in an index? P/E ratio is more volatile, thus harder to predict, than
Why is the P/E ratio important in estimating the value of stocks in an index?
- P/E ratio is more volatile, thus harder to predict, than earnings
2. The P/E ratio is multiplied by the earnings estimate to estimate the value
3. The P/E ratio is the price per share divided by the earnings per share
4. The P/E ratio is a popular way of comparing stocks with quite different prices
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