An Intuitive Guide to the PE Ratio
A Breakdown of a Timeless Investing Metric
Published in
4 min readNov 25, 2020
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…