Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

PE Ratio – Is Higher Better?

Some traders believe the higher the price/earnings ratio (P/E), the better. But the opposite is true. The P/E multiple represents the number of years' net income represented in the current price per share; so the higher the P/E, the more inflated market expectations.

P/E is computed …

Click here for the full article on ThomsettStocks.com

To gain more perspective on insights to investing observations and specific analysis, I hope you will join me at ThomsettStocks.com where I publish many additional articles. I also maintain a virtual portfolio of stock at ThomsettStocks.com. For new trades, I include a Chart of the Day marked up with reversal and confirmation, and provide detailed explanations of my rationale. Link to the site to learn more. Review the Membership Benefits today.