DeepSeek is a Chinese artificial intelligence (AI) company. The company has gained rapid attention among investors for developing advanced AI models that rival those of leading Western firms but at a fraction of the cost

The price-to-earnings (P/E) ratio measures how much investors pay for each dollar of a company’s earnings. This article explores its formula, interpretation, industry variations, and practical use, with a real-world example highlighting its significance in assessing valuation and growth potential.