Justification given by investors investing in low PE stocks
By dhanan
@dhanan (61)
India
December 22, 2006 11:06am CST
As described by Aswath Damodaran in his book "Investment Fables", justifications are:
1. Value investors buy low PE stocks
2. A low PE stock is an attractive alternatives to investing in bonds.
3. Stocks that trade at low PE ratios relative to their peer group must be mispriced.
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