The Essential P/E: Understanding the Stock Market Through the Price-Earnings Ratio

by Keith Anderson

The price-earnings ratio, or P/E, is the most commonly quoted investment statistic, but have you ever considered what it actually means? For most people it's a shorthand way of deciding how highly the market regards a company, with investors prepared to overpay for earnings from a high-P/E 'glamour' stock as opposed to a low-P/E 'value' stock. However, academics have known since 1960 that the opposite is true: value stocks outperform glamour stocks...

• Format: Paperback
• Language: English
• ISBN: 0857190806
• ISBN13: 9780857190802
• Release Date: June 2012
• Publisher: Harriman House
• Length: 214 Pages
• Weight: 0.95 lbs.
• Dimensions: 0.8" x 6.3" x 9.2"