According to Compounding Quality, stocks with a trailing P/E ratio below 25 are considered more affordable, while higher P/E ratios can indicate potential overvaluation (source: Compounding Quality on Twitter, June 22, 2025). For traders, monitoring P/E ratios is crucial for identifying value opportunities and managing risk. Lower P/E stocks may attract more institutional buying, leading to increased market stability, which can indirectly influence risk appetite and capital flows in the cryptocurrency market as investors adjust their portfolio allocations between stocks and digital assets.