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"Everyone still relies on a stock’s P-E ratio to invest, but a study shows it’s bunk" article

https://www.cnbc.com/2019/05/31/everyone-still-relies-on-a-stocks-p-e-ratio-to-invest-but-a-study-shows-its-bunk.html

"Leverage was the second most popular factor, or net debt/EBITDA, according to the study. Beta, size, and estimate revisions were among the other popular metrics."

Personally, I am guilty of said reliance. Logically, since Value stocks have lagged, "high-PE" Growth stocks have been the way to go. PE ratios be damned.

Comments

  • edited June 2019
    The stock market is itself bunk IMO, study or no study. Full of ANALysts doing ANALysis using ANALytics to predict the future from history through ANALogies, using language making the common man wonder if he has turned into an ANALphabet.

    The Vintage Freak and Amrut Fusion Single Malt. What a combination! Nothing else can yield words of wisdom such as the above.

  • #cheers! I like the goodies in your office!


    The Vintage Freak and Amrut Fusion Single Malt. What a combination! Nothing else can yield words of wisdom such as the above.

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