The financial industry has managed to confuse investors by implying that stocks are attractively valued based on their forward price-earnings ratios. This according to Joachim Klement, CFA, in a July…
Tag: Price-to-Earnings
Median P/E and P/S Ratios Show Overvaluation
Ned Davis of Ned Davis Research told MarketWatch, “Median price/earnings and price/sales ratios higher than at peaks in 2000 and 2007 are clearly a concern.” The comment is based on…
Re-defining Value
The value premium may seem to have disappeared. Since 1926, cheaper stocks have outperformed expensive ones by 400% according to data from Normura (see graph below). Since February 2007, however,…