Valuation asks a simple question: for what you're paying, are you getting a good deal on the company's earnings and growth?
The P/E ratio
Price ÷ earnings per share. A P/E of 20 means you pay $20 for every $1 of annual profit. High P/E usually means the market expects fast growth; low P/E can mean value — or trouble.
Always compare in context
- Versus the company's own history.
- Versus peers in the same industry.
- Against the growth rate — fast growers deserve higher multiples.
The AI Fair Value estimate (PRO) blends analyst targets, multiples, and fundamentals into a single cheap / fair / rich verdict so you don't have to eyeball it.