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How many years of current profit you are handing over. Inverts its meaning for cyclicals.

Only as good as the growth forecast, which is almost always optimistic.

It stands in for net margin, because an insurer's reported profit falls precisely when it sells more. A fast-growing insurer looks worse on P/E than one that has stopped selling.

Move price and earnings and see the multiple, the earnings yield, and how many years of profit you are actually paying for.