Problems with the Price/Earnings ratio - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Problems with the Price/Earnings ratio

Mar 14, 2014

Here is today's recommended reading list from Equitymaster...

What copper prices reveal about the economy?
Lead economic indicators give us an indication as to where the economy is headed in advance. It seems that copper price movement can turn out to be a good lead indicator. Most metal prices are up this year. However, copper is the only metal that has remained lackluster. Read on, to understand what the depressed copper prices mean for the economy in general and why the price movement of this metal is an important lead indicator of economic prospects. (The Growth stock Wire)

The must-have for investing in blue chips
To invest in smallcap companies investors need to have sufficient knowledge about the kind and long term sustainability of the business. They need to be aware of long term fundamentals. They need to verify the management quality. And finally they need to ensure that the valuations are attractive enough. Which of this is a must-have for investing in blue chips? Read on to find out. (Old School Value)

How to identify a shareholder friendly management
The management's integrity should rank very high up on the selection criteria of any long term investor. After all, the company management are insiders and they posses sensitive information which can influence the stock price. They take strategic business decisions which can make or break the company. How does one go about evaluating the management? This brilliant article identifies seven key criteria to determine if the management is shareholder friendly. (

The fall of the world's largest Bitcoin exchange
The world's leading exchange for the digital currency Bitcoin Mt. Gox collapsed when its systems were hacked by unknown cyber criminals. This resulted in a huge amount of wealth being destroyed. A lot of spectators were wiped out in this debacle. Read the story about it as well as an interesting analysis here. (Safe Haven)

Problems with the Price/Earnings ratio
The price/earnings (P/E) ratio is, without doubt, the most widely used method to value stock around the world. In fact, many people use it blindly without even considering any other parameter! However, the P/E ratio has many inherent flaws. Read on to find out what they are and how to use it wisely. (Morning Star)

This article is for information purposes only. The link in this article will let the User leave and proceed to the linked article. The User's use of each such site is subject to Terms of Use on and other terms of use, if any, contained within each such site. Any data and charts if used, in the article have not been authenticated by Equitymaster and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views, if any in the linked article are not of Equitymaster. Equitymaster will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any investment decisions based on this article. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "Problems with the Price/Earnings ratio". Click here!


More Views on News

The Top 6 Artificial Intelligence Plays in India (Views On News)

Dec 6, 2021

Investors looking to tap into AI theme need to keep an eye on tech firm leveraging the power of AI are making things possible.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

6 Indian Companies Betting Big on Renewal Energy (Views On News)

Dec 7, 2021

Here's the list of companies pouring in the big bucks to push India's sustainable energy industry to the next level.

Is it a Good Time to Trade OMC Stocks? (Fast Profits Daily)

Dec 7, 2021

This is how you should think about trading OMC stocks.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 7, 2021 (Close)