An Intuitive Guide to the PE Ratio

A Breakdown of a Timeless Investing Metric

Mikhail Mew
DataDrivenInvestor
Published in
4 min readNov 25, 2020

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Photo by Jaredd Craig on Unsplash

Since the popularization of value investing by Benjamin Graham in “The Intelligent Investor” (and Security Analysis) the price earnings ratio(PE) has been a favorite among investors to help gauge the valuation of stocks. While its does provide a simple and easy to understand metric, its use can be subjective and bound by nuance. The…

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Researcher | Investor | Data Scientist | Curious Observer. Thoughts and insights from the confluence of investing and machine learning.