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LuckyCharms

(20,679 posts)

2. PE ratio is price to earnings.

Reply to yardwork (Reply #1)

Wed Sep 24, 2025, 10:09 AM

Wednesday

It is the stock price divided by the earnings per share of a company. Or in this case, a group of companies (those in the S&P 500).

Current PE ratios are high as compared to a long history, indicating that stocks MAY be over valued. Unless there is a rational reason for a higher than historical PE.

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Bernardo de La Paz Johonny Wednesdays

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If stock market Price-Earnings ratio alarms you when historically compared, this will scare you [View all] Bernardo de La Paz Wednesday OP

Please explain what this means. yardwork Wednesday #1

PE ratio is price to earnings. LuckyCharms Wednesday #2

PE Ratio is price earnings ratio. I updated thread title (thanks) and explain a bit here Bernardo de La Paz Wednesday #3

Thank you! yardwork Wednesday #4

I know you asked Bernardo, but if I may... LuckyCharms Wednesday #5

That is what I suspect, too. yardwork Wednesday #7

I watch stock "candles" every day... LuckyCharms Wednesday #8

Stocks drop on good earnings if the "guidance" is negative or if it is less than expected or if a competitor is coming Bernardo de La Paz Wednesday #10

Think about this, Bernardo... LuckyCharms Wednesday #11

The market is full of idiots and greater fools. They can be taken advantage of without manipulation Bernardo de La Paz Wednesday #13

Good luck to you... LuckyCharms Wednesday #14

1) Market timing is almost impossible, 2) tRump is not the only factor, 3) There's money to be made in any market hi/lo Bernardo de La Paz Wednesday #9

There's a new paradigm IMO Johnny2X2X Wednesday #6

Nah. The original growth stocks were exploiting the New World (the Americas). Then Bernardo de La Paz Wednesday #12