What does a low P/E for a stock indicate?
A)People may expect earnings to fall in the future perhaps because the firm will be faced with increased competition.
B)Its dividends have been low so that no one is willing to pay very much for it.
C)The corporation is possibly overvalued.
D)It is a good time for buying the company's stock.

Question

Quizplus · Accepted Answer

A low P/E ratio can indicate that investors expect future earnings to decline, possibly due to increased competition or other challenges.

What Does a Low P/E for a Stock Indicate