PE Ratios

[dutchie]

As the sp goes down so does the PE Ratio (ignoring possible profit down grades).

I was wondering what value for the PE Ratio would make a stock attractive to forum members?

 

[Smurf1976]

Around 7 is a nice MAJOR bottom number...

 

[eddievanhalen]

PE of 7 can be nice if you have a company that will be at least maintaining and preferably growing earnings next FY but don't get into the trap of thinking a historical PE of 7 is cheap because if the E (earnings) drops next year then the PE all of a sudden becomes much bigger.

Plenty of stocks trade on low PE for that (very good) reason - anticipation of the E value being lower. The trick is to pick the baby that's been thrown out with the bathwater and it ain't easy.

Ed.