FYI: You have a choice to invest in asset class A, which has a one-year forward-looking price-to-earnings (P/E) ratio of 10.6; or asset class B, with a P/E of 15.7. The P/E of B is 48% higher than it is for A. You then look at another valuation metric, the price-to-book (P/B) ratio. You find that A has a P/B of 1.1, while B has a P/B of 2.5. The P/B of B is 2.3 times that of A. And for investors focusing on dividend yields, the yield on A is 2.9% versus 1.9% for B.
Regards,
Ted
https://www.etf.com/sections/index-investor-corner/swedroe-30?nopaging=1
