Why Using Average P/E Ratio is More Realistic

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

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. Sign up for free     Log in