What is a P/E ratio and how can I use it to invest?

What is a P/E ratio and how can I use it to invest?

There are as many approaches to analyzing an investment as there are flavors of cake. Some may prefer a vanilla approach that keeps things simple and sweet, while others like to dive into the dark depths of a chocolate death. Regardless of your taste preferences, it’s wise to have a method to your madness when picking stocks.

“Stock prices can move a lot, so having multiple ways to determine a stock’s value is important information when deciding whether to buy or sell a stock,” says Ayako Yoshiokaa senior portfolio manager at Wealth Enhancement Group.

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