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).
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