Why P/E Numbers Suck

from the welcome-to-wall-street-roulette dept

A good article that tries to explain away the cause of much of the tech world’s fluctuations by blaming the concept of the P/E ratio. While I will admit that people rely way too blindly on P/E ratios (and comparables) that doesn’t mean it’s a useless figure. It should be one of many tools that an investor uses to judge a stock. However, I agree that it’s certainly got its problems. I just am not ready to toss it out completely yet.

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