Why The PE Ratio Fails Investors & (How to Avoid the Traps!)

[@angelpeng7384]

This is the best explanation of PE ratio on the internet!

[@mistery2628]

For more cyclical businesses, but established businesses with a stable dividend policy, I prefer to use historical dividend yields to find a good entry point. That works usually reasonably well.

[@TuanTran-sl3lv]

Thanks for your video Hamish

[@TuanTran-sl3lv]

Thanks Hamish for your video

[@stonehavenvillas8915]

Always helpful content.

[@financialprosperity19]

I like the PEG ratio much better

[@InvestingEducation]

Nice video. For the real money portfolio we usually look at EV/cashflow as a more accurate valuation tool

[@HamishHodder]

Nice!

[@hugomeza2910]

Great video! I just learned something new about the P/E ratio that no one really talks about. What price tag would you put on Thor as of today’s price and valuation?

[@HamishHodder]

it depends on how you estimate their cash flow in the future but I think you can conservatively get to $90 of intrinsic value.

[@Allen-L-Canada]

So, this video is more about how do you come up with a reasonable future growth rate estimate. In the case of Thor, you actually went back 20 years to compare two business cycles in order to come up with the growth rate.

[@markhopkins6056]

Music in the background is distracting. Your info is great. I think too technical for unnecessary music. My opinion. Will still listen of course.

[@HamishHodder]

Thanks for the feedback Mark I appreciate it

[@RedThunder0000]

Outstanding explanation, thank you.

[@Lhb428]

On macrotrends website you can see a company’s eps and p/e, quarterly, over multiple years

[@jorisarnoldy100]

I am going through allot of you movies and I have the feeling I started a course of finance. Do you take exams? ;)

[@rrurban]

P/E ratios work wonderfully but only if you're looking at predictable businesses

[@HamishHodder]

Agreed

[@conceptbarbershop]

great video!!

[@AussieMoneyMan]

Good video Hamish, there are still a lot of people out there 'value investing' almost purely based off the PE ratio. P.S. Shot you an email.

[@HamishHodder]

Thanks! I'll check it out man

[@beaviswealth]

Nice vid bro

[@HamishHodder]

Thanks Brandon

[@rodfeldtmann3488]

Does someone publish a list of P/E and PEG ratios?

[@HamishHodder]

You can find alot of them on a website like Finviz

[@nickchew5708]

6:30 7:13 7:45

[@ReizarfEgroeg]

If you make a video about your return rate, I will subscribe.

[@HamishHodder]

Check out the 'My Investment Portfolio' playlist on my channel. Every 6 months I report my portfolio's returns :)

[@BKWSU]

What are your thoughts on the PEG ratio used by many famous investors?

[@HamishHodder]

It's definitely a step in the right direction!

[@BKWSU]

Hamish Hodder it's very similar isn't it to margin of safety?