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4 April, 17:10

If a firm's price-earnings ratio is relatively low, then it might be an indication that

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  1. 4 April, 20:52
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    That people expect the firm's earning to fall

    Price-Earning ratio is calculated by dividing Stock Price with its earning per share.

    When people expect a firm's earning to fall, it will significantly lower its stock price and there for make the price-earning ratio become relatively low
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