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What are the P/E and PEG ratios?

The Price to Earnings (P/E) ratio is a valuation ratio of a company’s current share price compared to its per-share earnings. The Price/Earnings to Growth (PEG) ratio is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth in the future.

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