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The Daily Capital
INVESTING 201 · Lesson 9

P/E ratios: what “expensive” actually means

Daily Desk · Editorial5 min read
A $500 stock can be cheaper than a $5 one. The price tag alone tells you almost nothing.

Here’s a question that trips up almost everyone new to investing: is a $500 stock more expensive than a $50 one? The instinct says yes. The instinct is wrong.

Educational, not financial advice.