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One of the easiest and simplest metrics that investors use to screen for, as well as value, stocks is the price-to-earnings ratio, better known as a stock’s P/E. Of course, on its face, a P/E is nothing more than a snapshot in time, but what if I told you it was far more complicated than that?
There are several P/Es that you need to keep in mind. Sure, there is the current P/E, which reflects a stock’s price divided by the current year’s expected earnings per share, but there are also trailing P/Es, as well as price-to-peak-earnings and price-to-trough earnings. Obtaining more»