BBAE Basics: P/E Ratio Video Explainer

By James EarlyAugust 9, 2024Posted in Basics, Investment Tactics

BBAE Basics: P/E Ratio Video Explainer

Everyone talks about the P/E ratio. Every investing data website has it (or nearly every one). And it’s incredibly simple to understand and use.

But these conveniences come with serious drawbacks, as James explains in the video below. You’ll learn five main weaknesses of the P/E ratio, how it’s used correctly, and two solutions that improve (somewhat) on its weaknesses.

Click here or the image below to watch:

This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.

Meet the Author

James Early

CIO @ BBAE

Meet James Early, the Chief Investment Officer at BBAE. James previously served as CEO of MarketWise’s China subsidiary, as well as Director of Research & Analysis at The Motley Fool. He's a frequent commentator in media such as CNN, BBC, CNBC, CCTV, WSJ, NYT, Fox, and Men's Health. James, a former hedge fund analyst (and current mountaineering enthusiast), enjoys building strategic partnerships and sharing Wall Street wisdom in Main Street parlance on the BBAE blog.