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PEs are only one the factors some people consider when deciding at what price they will buy or sell a stock. There are lots of other factors. A few are interest rates, inflation rate, prices of other stocks, company fundamentals, growth of competitors, industry group fundamentals, earnings, earnings growth, sales, market share, sales growth, stock price momentum, industry momentum, the season, stock market momentum, marketing initiatives, broker recommendations, demographics, number of shares outstanding, number of shares available to be traded, etc. Anything that effects supply of a stock or demand for a stock effects its price. |
