Calculating Company's Price-to-Earnings (P/E) Ratio
The price-to-earnings (P/E) ratio is a valuable metric used to assess a company's value compared to its earnings per share. By understanding how to calculate a company's P/E ratio, investors can gain insights into the company's financial performance and make informed investment decisions. This prompt provides a step-by-step guide on calculating a P/E ratio, helping analysts and investors evaluate a company's valuation relative to its earnings potential.
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