Sector PE Ratio

The FMP Sector PE Ratio endpoint provides the price-to-earnings (PE) ratio for each sector of the stock market. The PE ratio is a measure of how expensive a stock is relative to its earnings. It is calculated by dividing the stock price by the earnings per share. A high PE ratio indicates that a stock is expensive relative to its earnings, while a low PE ratio indicates that a stock is inexpensive relative to its earnings. Investors can use the sector PE ratio to identify sectors that are overvalued or undervalued.
For example, if the technology sector has a PE ratio of 30, while the industrial sector has a PE ratio of 20, this may indicate that the technology sector is overvalued relative to the industrial sector. Investors may want to avoid investing in the technology sector until the PE ratio comes down.

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