3 ms·
The p/e ratio is extremely crude and should be avoided at all costs. The metric completely disregards capital structure (debt to equity) and uses earnings at a
by mxschumacher 6y ago
The p/e ratio is extremely crude and should be avoided at all costs.
The metric completely disregards capital structure (debt to equity) and uses earnings at a single point in time. Earnings can easily be manipulated.
Better to look at
Enterprise value / free cash flow