What does PE mean?

PE in finance stands for "Price-to-Earnings ratio." It is a valuation ratio that measures the current share price of a company relative to its earnings per share. The PE ratio is calculated by dividing the current market price of a company's stock by its earnings per share (EPS). It is commonly used by investors to determine the relative value of a company's stock and to compare the valuation of different companies within the same industry. A high PE ratio indicates that the stock may be overvalued, while a low PE ratio may suggest that the stock is undervalued. However, it is important to consider other factors such as the company's growth prospects, industry trends, and overall market conditions when interpreting the PE ratio.