Gordon's Line

Gordon's Line, also known as the Price/Earnings (P/E) ratio, is a way to evaluate a stock's value by comparing its current price to its earnings per share. Essentially, it shows how much investors are willing to pay for each dollar of a company's profit. A high P/E may indicate expectations of strong growth, while a low P/E could suggest the stock is undervalued or the company faces challenges. It helps investors assess whether a stock is fairly priced compared to its earnings potential and compare different companies within the same industry.