A New Method For Picking Stocks Using P/E Multiples by Martti Luoma and Jukka Sihvonen
Using screening criteria that incorporates stock valuation variables can prove to be an asset to a technical analyst. Here’s an intuitive and simple technique you can incorporate into your stock selection process.
Before making any investment, it’s necessary to do a careful valuation. When it comes to stock valuation, one common variable is the price-to-earnings ratio (P/E), but it comes with its share of limitations. In this article, we present the P/E ratio in a new context and discuss the resulting investment implications...