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- 2011-7-11
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3#
发表于 2011-7-13 13:23
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well easy way is a high P/E means over priced , so the opposite must be true for E/P.
Intuitively
A high Earnings/Price means that the unit of earnings per unit of price, so if the unit of earnings is higher PER unit of price, that means its a good deal as compared to a stock that a low unit of earnings per unit of price.. its rather simple. think about it like you are getting more earnings for the price you pay.
if you don't understand why a high E/P means undervalued, then i'm pretty sure you don't understand why a P/E means overvalued. |
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