Tag - stock indices

Advice to the Advisors

P/E Ratio | Price Earnings Ratio for Today's Market | Sheaff Brock Institutional

The P/E and Client Pessimism

Investors have become used to keeping their eye on the price earnings ratio of their pet stocks. In fact, the P/E is a useful way to evaluate the attractiveness of a company's stock price compared to its current earnings per share. As observers of the market, we also know the truth of Josh Kennan’s observation in thebalance.com: “One potential way to know when a sector or industry is overpriced is when the average p/e ratio of all of the [...]