Should we focus on PE ratio or, on the Business as a whole?
When markets reach all-time highs or at all-time lows, the age-old debate about valuation reignites. However, before you consider changing your investment allocation based on whether the market looks to be overpriced or undervalued, you must first understand which valuation criteria are important. The price-earnings (PE) ratio is one such statistic that might help solve this …
