The price of the stock divided by the profits per share of stock is known as the

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The price-earnings ratio (P/E ratio) is a financial metric that is calculated by dividing the current market price per share of a stock by its earnings per share (EPS). It indicates how much investors are willing to pay for each dollar of earnings that the company generates. A higher P/E ratio generally indicates that the stock is more expensive relative to its earnings potential, while a lower P/E ratio suggests that the stock may be undervalued.

The Price of the Stock Divided by the Profits Per