{"product_id":"the-essential-pe-understanding-the-stock-market-through-the-price-earnings-ratio-9780857190802","title":"The Essential P\/E: Understanding the Stock Market Through the Price-Earnings Ratio","description":"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 consistently over decades. A company with a low P\/E may have been marked down for no readily apparent reason and thus could represent an attractive value investment for those with the patience to wait while the market re-values it. However, the P\/E is a backward-looking measure and just because the company earned  1 per share last year it doesn't necessarily mean it will earn anything like that in the foreseeable future. Or, a low P\/E can mean a company is deservedly cheap because it is in financial difficulty - in this case the company is likely to become cheaper yet or even go into administration. This book is a practical guide to how you can adjust and improve the price-earnings ratio and use it, alongside other financial ratios, to run against the crowd and boost your stock returns.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eBinding Type:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Harriman House\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 07\/04\/2012\u003cbr\u003e\u003cb\u003eISBN:\u003c\/b\u003e 9780857190802\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 196\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 0.78lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 9.16h x 6.29w x 0.76d","brand":"Keith Anderson","offers":[{"title":"Default Title","offer_id":36645348540572,"sku":"9780857190802","price":22.1,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0473\/0804\/6492\/products\/img_0db98d68-497f-4adf-a51e-c358b00b3da5.jpg?v=1603860892","url":"https:\/\/pastforward.org\/products\/the-essential-pe-understanding-the-stock-market-through-the-price-earnings-ratio-9780857190802","provider":"Past Forward","version":"1.0","type":"link"}