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Price to Earnings ratio – an equity valuation measure that compares the stock price to the (per share) earnings of the company. Can be trailing (using last years earnings) or forward (using estimates of next year’s earnings).

[PE can also refer to Private Equity – shares in companies that are not traded on a stock exchange.]

Mike is the owner of 7 Circles, and a private investor living in London. He has been managing his own money for 35 years, with some success.

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