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#4. Don't Overemphasize the P/E Ratio

Friday, April 6, 2018, 8:14 AM

Investors often place too much importance on the price-earnings ratio (P/E ratio). Using only this ratio to make buy or sell decisions is dangerous and ill-advised. So, a low P/E ratio doesn't necessarily mean a share of the Company is undervalued, nor does a high P/E ratio necessarily mean, a company is overvalued.
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