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Sunday, 05/15/2022 11:23:04 AM

Sunday, May 15, 2022 11:23:04 AM

Post# of 5074
Opinion Learning P/E Ratio vs Earning

Many would argue, like William O'Neil, that just because a stock trading at the low end of the yearly P/E range does not make it a good investment.

They would continue to argue we should consider whether the rate of change in earning is substantially increasing or decreasing.

They would however use P/E to guess the potential price objective of a growth over the next 6 to 18 months based on its estimated future earnings.

TL/DR
Earnings and future earnings are the leading indicator when utilizing the P/E ratio in stock valuation.

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