The use of P/E ratios to select stocks suggests that

Name: The use of P/E ratios to select stocks suggests that
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A stock selling near its historic low P/E ratio may indicate that it is undervalued relative to its past market performance, potentially offering a good buying opportunity. High P/E ratios can suggest overvaluation, and low P/E ratios do not inherently mean a stock is overvalued; it could also indicate undervaluation or sector differences.

The Use of P/E Ratios to Select Stocks Suggests That