Determinants of PE ratio
By dhanan
@dhanan (61)
India
2 responses
@harshadod (858)
• India
23 Dec 06
PE is a good indicator to begin with. There are many manipulations to PE.
It can be historical PE, trailing PE, future PE etc.
Also the PE for different industries is different. The market leader may have a different PE and a company in loss technically has no PE.
PE is a initial guide.
Many other indicators like PEG, RONW, Cash flow are also important.