P /
E ratio analysis (both absolute and relative valuation) is not a silver bullet when it comes to stock picking.
Not exact matches
To date, results from several longitudinal studies indicate that
e-cigarette use among nonsmoking youth increases the likelihood of future use of conventional cigarettes.5 — 10 Specifically, the pooled odds
ratio (OR) in a recent meta -
analysis of studies of adolescents and young adults (aged 14 — 30) indicates that those who had ever used
e-cigarettes were 3.62 times more likely to report using cigarettes at follow - up compared with those who had not used
e - cigarettes.11 This finding was robust and remained significant when adjusting for known risk factors associated with cigarette smoking, including demographic, psychosocial, and behavioral variables such as cigarette susceptibility.
However, a simple price - to - earnings (P /
E)
ratio, whether based on a snapshot in time or a smoothed measure of earnings, can be more useful, providing some indication of the possible distribution of future returns, our
analysis shows.
The wild card in this
analysis is the change in the P /
E ratio.
This time I selected three of the top silver stocks by their P /
E ratio for
analysis.
(S&P 500 P /
E Ratio at Troughs: A Detailed
Analysis of the Past 80 Years)
P /
E ratios do not work very well for cyclical / turnaround stocks - a Peter Lynch point - but an
analysis ex-financials or ex-cyclicals is time consuming and have not seen anywhere.
For comparison, I've presented the identical
analysis below using Shiller P /
E ratios rather than dividend yields.
As you dig in, you'll discover jargony things like PEG, P /
E ratio, technical
analysis, and price - to - book.
Now that you've learned all about EPS, P /
E and Debt to Equity
Ratio from Lesson # 3 at Wealthlift.com, it's time to beef up your
analysis with these additional financial
ratios.
An
analysis of common D /
E ratios in the sector can determine whether a debt level is sustainable for an individual company.
Sure, they might be using some form of fundamental
analysis to decide if it's a «good» company; perhaps credit risk, company sales, P /
E ratio, management team and overall growth, however, stocks do not always trade rationally.
accretion, activist investors, Avangardco, Cal - Maine Foods, corporate governance, eggs, enhanced EPS / NAV, free cash flow, intrinsic value, Iryna Marchenko, lowest cost producer, M&A, majority control, minorities, Nataliya Vasylyuk, Oleg Bakhmatyuk, P /
E ratio, P / S Ratio, Return on Equity, risk aversion, share buyback, technical analysis, Ukraine, Ukrlandfa
ratio, P / S
Ratio, Return on Equity, risk aversion, share buyback, technical analysis, Ukraine, Ukrlandfa
Ratio, Return on Equity, risk aversion, share buyback, technical
analysis, Ukraine, Ukrlandfarming
I am a big fan of the
analysis at dshort.com, and pay close attention to the P /
E Ratio Market Valuation updates.
Analysis is not a recitation of P /
E ratios or growth rates.
Learn about P /
E ratios, price - to - book - value
ratios, price - cash flow
ratios, debt - to - equity
ratios, plus other steps to strong investment portfolio
analysis.
Hans Wagner of Trading Online Markets has an excellent
analysis of the S&P 500 P /
E ratio today.
Comparable Company
Analysis: values a company through multiples used from similar publicly traded companies (EV / EBITDA, P /
E Ratios, etc.).