Tag
#pe-ratio
7 articles
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Portfolio P/E and P/B Ratio: How Portfolio Valuation Is Aggregated
Portfolio P/E and P/B summarise how expensive a whole portfolio looks. The aggregation method, weighted average versus harmonic versus aggregate, changes the answer materially.
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P/E Below 20 Worked for Me. Until It Didn’t.
Five FY26 IT companies all traded below 20 times earnings, yet their growth, returns on capital and cash conversion were very different. The threshold was only the first question.
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The 1x P/E Illusion: When One-Time Profit Distorts Valuation
A very low P/E can be an accounting snapshot, not a recurring valuation. Separate ongoing earnings from exceptional and discontinued gains first.
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Why a Cheap Stock Can Stay Cheap: Understanding Value Traps
A value trap is a stock that looks cheap on a low multiple but stays cheap because the business underneath is deteriorating. Low price and cheap are not the same thing.
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The P/E Ratio Is Not Enough: Six Numbers to Read With It
The P/E compresses a business into one number and loses the detail. Six companions, growth, returns, cash, debt, cycles, share count, restore the picture.
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How to Value a Cyclical Company (and Why P/E Betrays You)
Cyclical companies fool the P/E ratio: it looks cheapest at the top and dearest at the bottom. Here is why, and the tools professionals use instead.
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The P/E Ratio Explained: Why a Low P/E Is Not Always Cheap
The P/E ratio is share price divided by earnings per share. A low P/E is not automatically cheap, because it often reflects low growth or higher risk.
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