Investment Insights
February 06 2020
The P/E Ratio: A User's Manual
27 min listen
Steven Bleiberg, Managing Director, Portfolio Manager, TD Epoch
Does a stock’s price and its P/E ratio tell you how much a company is worth? Conventional wisdom says yes, but we think otherwise. In this episode, explore the theory behind the discounted cash flow (DCF) valuation model and the underappreciated role that ROIC plays. Also, learn how we can use what we have learned about the DCF model to deconstruct P/E ratios in the real world.
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