Go to the Globe and Mail homepage

Jump to main navigationJump to main content


You’re valuing your equity holdings wrong Add to ...

Subscribers Only

A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading this morning on the Web

Many investors and most of the financial media reflexively refer to trailing price-to-earnings ratios as the primary measure of a stock’s "cheapness" or "expensiveness."

The assumption is that stocks with lower PE ratios are more of a bargain and will outperform. Morgan Stanley analysts believe this is a big mistake, and that future investment return have nothing to do with high or low PE ratios,

Report Typo/Error

Follow on Twitter: @SBarlow_ROB

Next story




Most popular videos »

More from The Globe and Mail

Most popular