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21 January 2025

Home / Pe Ratio

Pe Ratio

1-12 out of 12 results.

This cornerstone of stock market valuation has been left behind

For decades, cyclically adjusted P/E ratios have been a common and widely accepted gauge of market valuation. But as the financial landscape continues to evolve, so too must our tools for understanding it.

Finding single-digit PE stocks in an overvalued market

For one Commonwealth Bank worth ~$200 billion, you can buy three of Europe's leading banks with much larger addressable markets. This is just one example of the extreme valuation divergences across global stock markets.

Quality ASX retailers are on sale

Everyone appears negative on the outlook for consumer discretionary spending and that's been reflected in the share prices of ASX-listed retailers. The chance to buy quality retailers at cheap prices has arrived.

Is your fund manager skilful or just lucky?

How do you separate skill from luck in the performance of a fund manager? Investing is a mix of art and science in a highly-competitive industry full of smart people. Here are tips on what to look for.

Four tips to catch the next 10-bagger in early-stage growth

Small cap investors face less mature companies with zero profit that need significant capital for growth. Without years of financial data to rely on, investors must employ creative ways to value companies.

Where will investment returns come from in 2021?

There are only three sources of returns when investing in companies. Whether an investment delivers on dividends, earnings or valuation expansion determines performance, and the contribution of each varies over time.

10 factors to watch when buying expensive shares

Value investors often shun expensive shares with high price to earnings ratios, only to watch prices continue to push ahead. What should investors look for to avoid missing these opportunities?

Take no income from the best companies

There’s nothing quite like receiving cash without having contributed any sweat or labour. But are dividends the best way for companies to reward their investors? What's happened to reinvesting for future growth?

One day, you’ll be glad you feel old and tired

When you've been around long enough to have witnessed financial disasters, you wonder at the exuberance of youth embracing the great unknown. Are you missing out or will being old and tired eventually prevail?

Don’t go swimming naked for a short term thrill

Poor quality companies sometimes deliver impressive short term gains, especially when left behind in a previous rally, but the longer term is likely to disappoint. When equity markets turn, nobody likes to be exposed.

Expect disappointment as values become stretched

When share prices are rising faster than corporate earnings, it is almost certain that the value available in the market is declining, and ultimately, value is a crucial driver of long term investment performance.

Value investing and valuing a business

Value investing involves buying stocks at a discount to their intrinsic value but what valuation multiples do you use to identify the intrinsic value of a company?

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