Value Trap

A Low P/E Does Not Always Mean Cheap: Four Traps the Ratio Hides on the Tehran Exchange

The price to earnings ratio is the stock market's most used number and its most misunderstood. Karbon traded at a P/E of roughly 5.1 against its coal group average of 21.8 on 13 July 2026 (22 Tir 1405), a figure that screams "cheap" at first glance. This guide sets out what P/E actually measures, the four situations in which it misleads, why high inflation bends the number on the Tehran exchange, and the four questions to ask before drawing any conclusion.