Why Using Average P/E Ratio is More Realistic

P/E Ratio
Knowledge Center

 

Next Topic

P/E Ratio > Forum > Why Using Average P/E Ratio is More Realistic

Why Using Average P/E Ratio is More Realistic
Philippe
During favorable economic times (boom), company earnings are at record levels. As a result, the high stock prices and seemingly low P/E ratio's appear acceptable. But investors are advised to use average earnings over the past 10 years or so to calculate the P/E ratio, and compare that to the historical long-term average. This gives you a more realistic insight in the Price to Earnings ratio. (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

    Log in

         
Special Interest Group Leader

Interested? Sign up for free.


P/E Ratio
Summary
Forum
Best Practices


    P/E Ratio
    Knowledge Center

     

    Next Topic



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2019 12manage - The Executive Fast Track. V15.2 - Last updated: 13-12-2019. All names of their owners.