Because it is easy to calculate and understand among the valuation ratios, PE ratio often acts as an anchor when investors are making investment decisions. Given the huge difference in what is value and what looks cheap due to one financial ratio, more often than not, relying on PE may lead to wrong investment decisions. It is better to use PEG ratio when looking for long-term investment, though finding the right ratio is itself a challenge. In
Why PEG ratio is better than PE for selecting stocks for investing - Economic Times
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