Thursday, September 15, 2011

New Video: V2D. Illustrated Shortcomings of the P/E Ratio (and other ratios)

The P/E ratio has numerous shortcomings - some of which relate to how earnings are calculated, and some of which relate to the nature of looking at one year's data (as the other ratios like EV/EBITDA and P/Sales) do as well. This video illustrates in brief issues that relate to looking at one year of data.

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