Technical/Fundamental Question
Hi guys, I have a quick question regarding trading P/E Ratio & Discounts
If a stock is trading at a lower P/E than it's peers or industry. It is trading at a discount correct?
Now, if the company has a declining business, the discount is JUSTIFIED right? Because Investors are paying less for its earnings?
Id say that there is more of an EXPECTATION of a declining business which would drive down the P. Its not that they are paying less for the earnings; its more a case of paying less due to the expectations of lower further earnings.
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