iTunes

Opening the iTunes Store.If iTunes doesn't open, click the iTunes application icon in your Dock or on your Windows desktop.Progress Indicator
Opening the iBooks Store.If iBooks doesn't open, click the iBooks app in your Dock.Progress Indicator
iTunes

iTunes is the world's easiest way to organize and add to your digital media collection.

We are unable to find iTunes on your computer. To download from the iTunes Store, get iTunes now.

Already have iTunes? Click I Have iTunes to open it now.

I Have iTunes Free Download
iTunes for Mac + PC

The Essential P/E

Understanding the stockmarket through the price-earnings ratio

Keith Anderson

This book is available for download with iBooks on your Mac or iOS device, and with iTunes on your computer. Books can be read with iBooks on your Mac or iOS device.

Description

The price-earnings ratio, or P/E, is the most commonly quoted investment statistic, but have you ever considered what it actually means? For most people it's a shorthand way of deciding how highly the market regards a company, with investors prepared to overpay for earnings from a high-P/E 'glamour' stock as opposed to a low-P/E 'value' stock. However, academics have known since 1960 that the opposite is true: value stocks outperform glamour stocks consistently over decades.

A company with a low P/E may have been marked down for no readily apparent reason and thus an attractive value investment for those with the patience to wait while the market re-values it. However, the P/E is a backward-looking measure and just because the company earned £1 per share last year it doesn't necessarily mean it will earn anything like that in the foreseeable future. Or, a low P/E can mean a company is deservedly cheap because it is in financial difficulty - in this case the P/E is likely to become cheaper yet or the company even go into administration.

This book is a practical guide to how you can adjust and improve the price-earnings ratio and use it, alongside other financial ratios, to run against the crowd and boost your stock returns.

The Essential P/E
View In iTunes
  • $14.99
  • Available on iPhone, iPad, iPod touch, and Mac.
  • Category: Personal Finance
  • Published: May 21, 2012
  • Publisher: Harriman House
  • Seller: Harriman House Ltd
  • Print Length: 221 Pages
  • Language: English
  • Requirements: To view this book, you must have an iOS device with iBooks 1.3.1 or later and iOS 4.3.3 or later, or a Mac with iBooks 1.0 or later and OS X 10.9 or later.

Customer Ratings

We have not received enough ratings to display an average for this book.