Michaella Gallina, Wave's chief financial officer, recently joined Stocks In Translation to explore the significance of the P/E ratio. She shares insights on how this important metric can help traders identify stocks worth monitoring.

"I look at a company's price-to-earnings ratio... If you map that over a decade or maybe five or six years... then you can kind of create bands based on its trading range, right?" Gallina continues, "You could put a median trading multiple on that stock and anything beneath that I'm going to be keeping a very close eye on."

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This post was written by Neil Mulcahy.