 In the current session, Immuron Inc. NASDAQ: IMRN is trading at 10.30, after a 20.06 spike. Over the past month, the stock increased by 412.50, and in the past year, by 248.01. With performance like this, long-term shareholders optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently below from its 52 week high by 64.47.The PE ratio is used by long-term shareholders to assess the companys market performance against aggregate market data, historical earnings, and the industry at large. A lower PE indicates that shareholders do not expect the stock to perform better in the future, and that the company is probably undervalued. It shows that shareholders are less than willing to pay a high share price, because they do not expect the company to exhibit growth, in terms of future earnings.Most often, an industry will prevail in a particular phase of a business cycle, than other industries.Compared to the aggregate PE ratio of the 0.16 in the Biotechnology industry, Immuron Inc. has a lower PE ratio of 0.0. Shareholders might be inclined to think that they might perform worse than its industry peers. Its also possible that the stock is undervalued.Price to earnings ratio is not always a great indicator of the companys performance. Depending on the earnings makeup of a company, investors may not be able to attain key insights from trailing earnings.See more from Benzinga 20 Healthcare Stocks Moving In Thursdays Pre-Market Session 20 Healthcare Stocks Moving In Wednesdays Pre-Market SessionC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 