TITLE

An attractively low p:e can oe misleading

PUB. DATE
March 2009
SOURCE
Finweek;3/19/2009, p14
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
The article focuses on the efficacy of the price-earning (p:e) ratio in stock valuation. Analysts believed that p:e method is not reliable in evaluating the market value of stocks, for example an attractive p:e of between seven and 10 means that shares are cheap but it cannot be relied on because it is not yet stable. Moreover, if the profit per index will fall to $50, even with the current low S&P index of 735, the p:e would rise to 14,7 and to 18,3, meaning shares are already expensive.
ACCESSION #
37357138

 

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