Every time the market rallies for a few days the talking heads start talking about record highs…as if that is a bad thing! While “record highs” really is an irrelevant valuation metric, there are many standard ways to evaluate a stock’s or index’s fair value. One of the most common metrics is known as the Price to Earnings ratio or P/E.
Below is an article I recently published at http://www.HorsesMouth.com.
Bill DeShurko 