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  1. B

    Question: how come some low p/e stocks that maintain or grow earnings don’t produce anywhere near the results their p/e would suggest?

    @billcody A low PE ratio suggests that there is not a huge price premium per dollar of earnings because the future cash flows are not expected to grow wildly. The P/E doesn’t say anything about expected returns. They maintain low P/E because the companies hve matured out of the growth phase.
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