Читать книгу Cotter On Investing - John Cotter - Страница 20

In summary, I believe the PE is a much better guide to value of the overall market than it is for individual shares. In fact, I would regard the one year forecast PE to be by far the best guide of value when it comes to general market levels.

With regard to individual shares, it is useful but certainly not the complete answer. In the following chapter we will look at what I believe is a better guide for share prices: the PEG.

Note: a table of PE values for the FTSE100 companies can be found in the appendix.