Wednesday, December 14, 2011

What is better when investing... a high P/E ration or a low P/E ratio?

A low PE ratio, of course. As an example, would you rather pay $1 for a company that earns $1 per year (ie, PE of 1x), or a company that earns 10c per year (PE of 10x)? I hope the answer is clear to you.

No comments:

Post a Comment