{"product_id":"9780857190802","title":"The Essential P\/E: Understanding the Stock Market Through the Price Earnings Ratio","description":"The price-earnings ratio, or P\/E, is the most commonly quoted investment statistic, but have you ever considered what it actually means? For most people it's a shorthand way of deciding how highly the market regards a company, with investors prepared to overpay for earnings from a high-P\/E 'glamour' stock as opposed to a low-P\/E 'value' stock. However, academics have known since 1960 that the opposite is true: value stocks outperform glamour stocks consistently over decades.\u003cbr\u003eA company with a low P\/E may have been marked down for no readily apparent reason and thus could represent an attractive value investment for those with the patience to wait while the market re-values it. However, the P\/E is a backward-looking measure and just because the company earned £1 per share last year it doesn't necessarily mean it will earn anything like that in the foreseeable future. Or, a low P\/E can mean a company is deservedly cheap because it is in financial difficulty - in this case the company is likely to become cheaper yet or even go into administration.\u003cbr\u003eThis book is a practical guide to how you can adjust and improve the price-earnings ratio and use it, alongside other financial ratios, to run against the crowd and boost your stock returns.","brand":"Harriman House Publishing","offers":[{"title":"Default Title","offer_id":47032958451952,"sku":"9780857190802","price":26.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/9780857190802_p0.jpg?v=1763828413","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/9780857190802","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}