Investors may sometimes be too focused on the price to earnings (PE) ratios of common stock. This could be a grave mistake. PE rations at any given time differ because of factors not related to the business fundamentals. Management has discretion over when to recognising revenue, which depreciation methods to adopt, whether to capitalize leases and paid expense, how to value work in progress inventory. alexlew/2013/07/why-you-should-not-buy-based-on-pe.html
Posted on: Thu, 04 Jul 2013 02:08:59 +0000
Trending Topics
Recently Viewed Topics
© 2015