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When investing in stocks, investors often base their decision on the P/E ratio, which is the ratio of price per share to earnings per share.

When investing in stocks, investors often base their decision on the P/E ratio, which is the ratio of price per share to earnings per share. Below are links to articles on using P/E ratios to make investment decisions:

  • Fool.com: How to value a stock (using P/E ratios)
  • Fool.com: Why is there so much variation in P/E ratios?
  • Investopedia.com - Using the P/E ratio and PEG to assess a stock

Please read the above articles and share your thoughts on one or more of the following questions:

  • What are possible reasons for differences in P/E ratios among stocks?
  • How would you use P/E ratios in making your investment decisions?

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