Showing posts with label the value of Price per Earnings. Show all posts
Showing posts with label the value of Price per Earnings. Show all posts

Sunday, December 12, 2010

Price per Earnings (P/E): Is it useful?

Investing in the stock market can be tricky, and it really is for a lot of people. Many people think there is some witchcraft or higher power involved that will never let them have any chance of understanding it.

How many people develop ways to “beat” the stock market? Honestly, you never will beat it. You just hope that you’re on the right side of the fight and pick the winner (or loser) correctly.

A lot of people try to offer different ideas, and some seem to make a lot of sense. (Some do not; at least, not to me.)

One thing that many investors check is the Price per Earnings (P/E) figure. In fact, this is one of the most popular ratios (comparisons) used when evaluating a stock.

Is it the best?