P/E ratio is a common measure of how the market currently values the firm’s earnings. It is a ratio between market price per equity share and earnings per share. But a low P/E ratio doesn’t necessarily mean a stock is undervalued, nor does a high P/E ratio necessarily mean the stock is overvalued. Look at [...] The post Investing Tip #115: Low P/E Does Not Mean Undervalued Stock appeared first on The College Investor .