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Field dictionary

Finance, translated.

Definitions are only useful when you know why they change a decision. Search by word, concept, or consequence.

2 terms

Guidance

Business

Management’s forward-looking expectations for future performance.

Why it matters: Compare the drivers and prior accuracy, not only whether guidance beat consensus.

P/E ratio

Valuation

Price per share divided by earnings per share.

Why it matters: It reflects expectations but can mislead when earnings are cyclical, negative, or unusually adjusted.