Use valuation metrics like the P/E ratio with caution ⚠️
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Use valuation metrics like the P/E ratio with caution ⚠️
The short-term predictive power is unreliable at best 🤷🏻
Valuation metrics like the price-to-earnings (P/E) ratio help investors understand if a stock — or a basket of stocks like the S&P 500 — is cheap or expensive relative to historical averages.
According to FactSet, the forward P/E on the S&P 500 is sitting at 15.8. That’s…
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