Talk:Price–earnings ratio/Archives/2014
Latest comment: 9 years ago by 159.63.167.171 in topic Is this correct?
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Is this correct?
"if one stock has a P/E twice that of another stock, all things being equal (especially the earnings growth rate), it is a less attractive investment." A stock with twice the PE of another stock is a more attractive investment, unless it is meant that it may be overvalued. But I think this is not the typical approach. — Preceding unsigned comment added by 212.126.160.101 (talk) 17:02, 24 June 2014 (UTC)
- Historically, stocks with lower P/E outperform ones with higher P/E. A stock with lower P/E, all else being equal, is "cheaper" than a stock with higher P/E, and therefore a better choice to buy (conversely, when selling the higher P/E is better to sell, being "more expensive", or if you prefer, "overvalued") 159.63.167.171 (talk) 03:17, 26 July 2014 (UTC)