The PE Ratio Is a Measure of How Highly a Stock

question 28

True/False

The PE ratio is a measure of how highly a stock is valued relative to its current earnings.

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Definitions:

Marketability

The ease with which a product or service can be sold in the market.

Return on Total Assets

Return on total assets (ROTA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficiently the company is using its assets to generate profits.

Return on Total Assets

A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficiently a company uses its assets to generate profit.

Interest Expense

The expenses an entity bears over a period for using borrowed capital.