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  1. What's the best P/E ratio? : r/ValueInvesting - Reddit

  2. Ihmiset kysyvät myös
    Price to Earnings is one of the most popular valuation ratios, and we all know that low is better than high. We also know that we are supposed to compare P/E ratios of peer companies and industry averages, and that P/E ratios should not be considered in isolation.
    Best P/E is 0. You pay 0 for infinite earnings. I don’t consider PE ratios and neither should you. EV/FCF instead. And one perfect ratio doesn’t exist because there isn’t one business. To paraphrase Buffett, it’s fine to pay a fair price for a wonderful business, and sometimes a wonderful price for a cigar butt.
    The most common use of the P/E ratio is to gauge the valuation of a stock or index. The higher the ratio, the more expensive a stock is relative to its earnings. The lower the ratio, the less expensive the stock. In this way, stocks and equity mutual funds can be classified as “growth” or “value” investments.
    The price-to-earnings ratio, or P/E ratio, helps you compare the price of a company’s stock to the earnings the company generates. This comparison helps you understand whether markets are overvaluing or undervaluing a stock. The P/E ratio is a key tool to help you compare the valuations of indivi
  3. What does the P/E ratio tell you and how does it help you ... - Reddit

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