PE Ratio Mirage: Why That ‘Cheap’ Ratio May Fool You!
The Price-to-Earnings – PE ratio is one of the most widely used valuation tools in investing—but it can often mislead investors. While it seems simple, relying solely on P/E can result in poor decisions if deeper context is ignored. For example, a company with a low PE ratio might look undervalued—but if its profits surged…