Читать книгу Cotter On Investing - John Cotter - Страница 16
Using the PE to compare companies in different sectors
ОглавлениеSome people feel when making stock comparisons the PE is only useful when you compare stocks within the same sector. Although I understand the logic here, I don’t agree with it. Some sectors offer the promise of growth more than others (e.g. bio-techs) and this will be reflected overall in higher PEs. However, this simply means that the sector is more expensive. Investing within it inevitably means there is more downside risk as there is greater scope for disappointment. Although you should take into account the average ratings in each sector when making investment decisions, I believe cross sector comparisons using PEs are still valid and act as a useful reminder of the real price we are paying for a share.