8 min readpe-ratio · valuation · value-investing
What is the best PE ratio for value investing? There is no universal answer, here's the worked-example proof
Every beginner asks what PE ratio counts as cheap. The honest answer is that there is no universal number. A PE of 15 in software is a screaming bargain. A PE of 15 in a utility is fairly priced. A PE of 15 in a coal miner is expensive. We walk through three sectors with worked examples.
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