Against Choosing Stocks from the Top Down
27 Dec 2022 1 minute read 0 comments stag89
The earnings yield of a stock is the inverse of its P/E ratio. So, a stock with a P/E ratio of 25 has a 4% earnings yield, whereas a stock with a P/E ratio of 8 has a 12.5% earnings yield. In this sense, a low P/E stock is analogous to a high-yield b...