Investors like ratios and the P/E ratio (Price/Earnings ratio) is the most popular. Some of the most successful value investors use the P/E ratio (along with other metrics) as a starting point in their research to find stocks that continuously beat the market. The reason is value investors tend to look for good quality stocks with lower than normal P/E ratios.
It’s not just value investors that use this ratio. The P/E ratio is used to argue under and overpriced stocks by every investment strategy, sometimes, far too often.
What is the P/E Ratio?
Any good financial site will list the P/E ratio right along side the stock price and it’s the best place to find it. The P/E or price to earnings is the simplest way to value a stock. What the P/E ratio tells you is how much someone is willing to pay for $1 of earnings. Which makes it a better representative of a stock than price alone. Continue Reading…
A number of tax code changes took effect at the start of this year. There were changes made to the 
Emerging markets ETFs and index funds are high risk, high reward investments. They certainly haven’t been kind to investors lately. But it doesn’t have to be, if you understand the risks. While most are thinking its time to cut and run, it might be a reason to buy.
There are many different