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Investing Tip #79: Prefer Stock Priced Less than 15 Times its EPS

P/E ratio is the ratio of market price per equity share and earnings per share. It is a common measure of how the market currently values the firm’s earnings. If you are a value investor, Graham advises not to invest in stocks where the P/E ratio is more than 15. Following this rule can help [...] The post Investing Tip #79: Prefer Stock Priced Less than 15 Times its EPS appeared first on The College Investor .
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