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The core takeaway from the discussion around P/E ratios is their indicative nature regarding growth expectations. A lower forward P/E ratio may signal anticipated growth in a company, while a higher P/E might reflect a more stagnant outlook. Apple Inc. serves as an illustrative example. Trading at about $100 with a trailing P/E of roughly 11, its valuation raises questions when contrasted against the broader market's average P/E of around 20 and competitors like Microsoft, boasting P/Es in the low 40s.
Such disparities suggest that the market doesn't expect Apple's growth trajectory to outpace industry peers, which offers both potential caution and opportunity for investors.