I’ve been able to identify what my P/E ratio is, and I have been able to use that number to identify the best-performing stocks. I am also currently tracking the P/E ratio for stocks that are underperforming at the moment, and I am working to identify the best-performing stocks in 2016, and then I will be working to make my picks for 2017.
I’m currently tracking the PE ratio for stocks that are underperforming at the moment, and I am working to identify the best-performing stocks in 2016, and then I will be working to make my picks for 2017.
I am still struggling with the same thing, which is why I’m using trailing P/E for the remainder of the year. I am sure that it will all come together once I have a strong idea of what to track.
At the moment, all I can say about trailing P/E ratios for the last several years is “It’s the same.
You can get into what it is about trailing PE ratios and why it is so important. If you were to put a value on trailing PE that was higher than the S&P 500, it would be a real bargain. The reason is that trailing PE is more important than other ratios like P/E. A P/E ratio is a pure number that is calculated as a ratio of the company’s market capitalization to its PE.
The fact is that the trailing PE ratio for many companies is much higher than the current market cap of the company. So if you’re tracking PE, you need to be taking into account the company’s market cap and how many times a month its market cap and PE are changing. What that means is that if you’re tracking a company’s trailing PE, you need to look at its PE change over the last month in order to get the correct trailing PE.
This is a very common mistake. Its common to see companies with a high PE change over a month, but the PE change over a month is very rarely going to correlate with a company’s market cap if it’s not changing as well.
This is also why I make a lot of my own recommendations, I look at the trailing PE, and I look at a companys PE change over the last month, and then I say, “Wait a minute, I wonder if that companys PE change is really associated with the market cap.
I don’t think people want to leave their PEs in the dark because they’re scared of them. The same goes for companies that have a PE change over a month, but the company’s PE changes over a month is less of a problem than it was on a month ago.
Just as you can’t get ahead in the stock market by hiding how much you’re making, a company can’t get ahead in a market by not knowing how much of its PEs are being diluted by a change in the valuation of its stock. I’m not saying companies are evil, but I am saying that you can’t do a lot of things that don’t work if you don’t know how much of your company is being diluted by a change in its PE.