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Don’t Misuse the P/E Ratio

Are you one of those investors who misuse and misunderstand the most popular measure of market valuation? If you’re basing your view of the market on the price-to-earnings ratio (P/E), then you’re in danger of being misled.

Understanding the P/E Ratio

The P/E is a helpful metric. But don’t make the amateur mistake of letting it be an end-all, be-all valuation metric…