P/E Ratios and the Method of Comparables
Lecture no. 8 from the course: Understanding Investments
Taught by Professor Connel Fullenkamp | 30 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Your skills broaden as you gain an additional tool for drilling down into a company to evaluate its investment potential. This lecture introduces the concept of valuation models, beginning with the popular Method of Comparables, which uses ratios like price-to-earnings, or P/E, to value stocks.