Look to the margins when using the price/earnings ratio
Look to the margins when using the price/earnings ratio
(via contrarianedge.com)
I love the price/earnings ratio, but like all investment tools, it is flawed. This is because it is only as good as the numbers that go into it. There is no debate about the “p” in the equation – price is quoted every second. But the “e”, though readily available, is only as good as the best estimates.

