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  • The Price to Earnings Ratio

    The Price to Earnings Ratio

    FFB-Post 23 The Price to Earnings Ratio (P/E Ratio) is a vital tool in the investor’s toolkit. Unlike the Price to Book Ratio, which focuses on a company’s asset value, the P/E Ratio assesses how much you’re paying for a company’s ability to generate earnings. The goal is to ensure that you’re not overpaying for…