Discussion :

The Price Earnings Ratio or PE ratio is an indicator of how expensive a stock is.

Some investors will look to invest in stocks with a high PE ratio.

Some will look to invest in stocks with a low PE Ratio.'

Why do different investors select stocks with such different PE ratios?

Thoughts suggestions and ideas welcome, but please make sure you support your arguments with appropriate referencing.

One of the things that can be very useful is comparing the PE ratio of a stock to the overall PE ratio of the market.

This can provide some context for the stocks and how they compare to the overall market, i.e. are they expensive or cheap relative to the market.

You can also do this to the particular sector they are in, once again providing some context.\

Any thoughts anyone?

Two Referencing