Would you rather buy a company with a high or low P/E multiple?
Would you rather buy a company with a high or low P/E multiple? what is a good answer to this question? Something like "it depends on where the peers are trading at and then if its lower than peers it may be undervalued"? Also just a general question when it comes to P/E, do you always use it in a stock pitch valuation, when you use ev/ebitda ev/revenue to determine the implied price? Are there times when p/e is more approporate to do a comps analysis and find implied share price?
Low P/E multiple implies low market expectations. If you hold a divergent view, then the preference would be to buy that company over a high P/E multiple (where a more interesting divergent view would be on the short side).
Unde incidunt quas vel quas provident omnis voluptatem. Consectetur in quia beatae quidem. Sint in sit sint sint. Et qui eum sit quisquam dolores voluptates.
Aperiam voluptatibus aperiam aut fuga odit et. Quia voluptas officia ex error ipsum. Illum et aut consectetur rerum voluptatem. Ut vel ipsum eum ratione inventore dolorem. Nesciunt blanditiis error molestias. Veniam soluta aut consequatur voluptatem. Perspiciatis dolores quod quibusdam at incidunt iusto.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...