Medi Assist Healthcare IPO
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Understanding the concept of price-to-earnings ratio (P/E ratio) is crucial in the world of finance. This ratio is calculated by dividing the stock price by the annual earnings per share. It gives us an idea of how much investors are willing to pay for each dollar of a company's earnings. A high P/E ratio may indicate that investors have high expectations for the company's growth, while a low P/E ratio may suggest undervalued stock. So, when analyzing a company's stock, it's important to consider its P/E ratio in order to make informed investment decisions.
