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The P/E ratio is strongly related to the past performance of the firm.
Probability
The measure of the likelihood that an event will occur, quantified between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.
Expected Value
The expected value is a statistical concept that calculates the mean of all possible values of a random variable, weighted by their respective probabilities.
Stock Price
Stock price is the value of a company's shares traded on the stock market, representing investor's valuation of the company's future earnings potential.
Probability
An indicator of how probable an event is, represented as a numerical value ranging from 0 to 1.
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