MarketWatch Premium: The much-heralded P/E ratio as a stock-selection tool has been more wrong than right

This post was originally published on this site

Is the P/E ratio worth following?

That would be an important question at any time but has become especially so now that the price-to-earnings ratio is declining.

The drop, caused by a combination of improving earnings per share and a falling stock market, brings the P/E ratio to within shouting distance of suggesting that equities are fairly…

Add Comment