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by Pastaman on June 2nd, 2003

Pastaman

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What is a good P/E ratio for a company to have?

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  • by Yoyo Head on April 5th, 2004

    Yoyo Head

    When thinking about a company's PE ratio, it's important to consider what sector that company is in, and the typical PE in that sector. A high PE ratio in one sector might be just average in another sector, or vice versa. A technology stock that trades at 15 times earnings may be considered cheap because the average PE ratio for technology stocks is 22, whereas an electric utility that trades at 10 times earnings can be viewed as expensive because the average PE ratio for utilities is only 7.

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    • would be useful to know where to look for 'average' PE ratings by sector

      Louise Wolf

      by Louise Wolf on August 25th, 2004

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