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🚨 $RESOLV is on Binance HODLer!
💭 Binance HODLer selected @ResolvLabs in Project 21! It will be listed on June 11, 2025, at 17:30 with $USDT, $USDC, $BNB, and $TRY pairs!
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we stand with iran 🇵🇰❤️🫶
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The Price-to-Earnings (P/E) ratio is a financial metric used to evaluate the valuation of a company's stock. It tells you how much investors are willing to pay today for one dollar of a company’s earnings. Here’s the basic formula: \text{P/E Ratio} = \frac{\text{Market Price per Share}}{\text{Earnings per Share (EPS)}} Market Price per Share is the current stock price. Earnings per Share (EPS) is the company's profit divided by the number of outstanding shares. For example: If a company's stock is trading at $100 and its EPS is $5, the P/E ratio would be: \text{P/E} = \frac{100}{5} = 20 This means investors are willing to pay $20 for every $1 of the company's earnings. Key Points: A high P/E might suggest the stock is overvalued or investors expect high growth in the future. A low P/E might suggest the stock is undervalued or the company is facing difficulties. It’s often compared with other companies in the same industry or with the overall market to gauge if a stock is fairly priced. Would you like me to also explain the difference between forward and trailing P/E ratios?
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