American Association of Individual Investors

Making the P/E Ratio More Meaningful

The price-earnings (P/E) ratio is arguably the most used measure of valuation. It is simple to calculate, but also susceptible to being managed by companies and influenced by investor sentiment. In ...

Apple heads into earnings with highest P/E ratio since 2007

That marks Apple’s steepest forward multiple since late 2007, surpassing peak levels seen throughout the post-pandemic tech rally. By comparison, its average P/E over the last five years was 29.7x, ...
Forbes

Mind The Multiple: What P/E Ratios Reveal About Future Growth

This voice experience is generated by AI. Learn more. This voice experience is generated by AI. Learn more. A company’s earnings multiple, often expressed as a price-to-earnings ratio, reflects what ...
Morningstar%2c Inc.

A Better Way to Predict Long-Term Stock Returns

The cyclically adjusted price/earnings ratio was introduced by John Campbell and Robert Shiller in their 1988 research paper, “Stock Prices, Earnings, and Expected Dividends.” The Shiller CAPE ratio ...

Cloudflare stock: insiders sell, options market points to a drop after earnings

Cloudflare stock has reversed sharply since October, falling from its year-to-date high of $370 to $264 as investors worry ...