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In simple terms, it makes sense to pay more for a stock whose earnings grow at a faster rate. Now, how much more should be paid would be and what would determine whether the stocks which are being bought are cheap or they just appear to be cheap due to one ratio, i.e PE ratio. PE ratio is one of the most overused and misused ratios, it is used by all and sundry to justify their valuations and create a mirage of value. From investor presentations to research reports, one finds its mention everywhere. Is there an alternative to it? ....

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