A Rule of Thumb to Compare a Stock's Price to Its Earnings

by Peter Lynch
A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you'd do pretty well.
Tags: earnings
Was this Tip useful?  
Was useful  Was not useful
Copy and paste this HTML in your website to link to this page