The Magic Metric

Fisher, Daniel
December 2007
Forbes Asia;12/10/2007, Vol. 3 Issue 21, p138
The article asserts that the price/earnings ratio is the best way to find cheap stocks to buy, according to money manager James O'Shaughnessy. Instead of the traditional starting point of stock research, which has been the price/earnings ratio, O'Shaughnessy, who oversees $11 billion from an office in Stamford, Connecticut, says he has a better measure, which is to compare a company's market value with its revenue.


Related Articles

  • TOP 50 PICKS AT A GLANCE. Burke, Doris // Fortune;12/22/2003, Vol. 148 Issue 13, p80 

    Presents a chart with details of the top 50 stock picks featured in the section. Names of the experts and their affiliations; Picks and their ticker names; Prices; 52-week highs and lows; Market caps; price/earnings ratios;.

  • SHORT TAKE. James, Craig // Money (Australia Edition);Nov2007, Issue 96, p94 

    The article focuses on the use of company profits as an indicator of share price. It explains that one way of determining whether shares are cheap or expensive is to compare share prices to earnings. It notes that the price to earnings (PE) ratio is a useful first step in assessing world...

  • Is PEG Leading You Astray? Stambovsky, Jeff // American Spectator;May2001, Vol. 34 Issue 4, p66 

    Presents information on price-earnings growth (PEG), an investment measurement tool. Basic shortcoming of the price-earnings (P/E) ratio; Analysis of the P/E ratio of two sample companies; Low PEG stocks recommended.

  • How We Determine a Stock's Margin of Safety.  // Morningstar StockInvestor;8/15/2006, Vol. 6 Issue 2, p8 

    This article explains how investors and stock analysts can determine a stock's margin of safety. Benjamin Graham, a legendary value investor was the first to use the phrase margin of safety. Morningstar's use of margin of safety in judging whether a stock is a buy at a given price is a major...

  • SHARE PRICES Could stagnate for a decade. De Klerk, Vic // Finance Week;5/4/2005, p14 

    The article reports that the share prices--especially in the U.S.--are still far from the levels ruling at the start of the millennium. Soon after the bells stopped tolling to herald the new century in 2000, the Dow Jones opened at 11,357 points, and as early as January 14 of that year an...

  • A Bias in Closing Prices: The Case of the When-Issued Pricing Anomaly. Brooks, Raymond M.; Shur-Nuaan Chiou // Journal of Financial & Quantitative Analysis;Sep95, Vol. 30 Issue 3, p441 

    Financial studies examining stock price behavior have principally relied on end-of-day data. This paper illustrates a bias in closing prices by reexamining the when-issue pricing anomaly with intraday data. With intraday data, major portions of the pricing anomaly can be explained by: a...

  • All's not about to collapse. De Klerk, Vic // Finweek;3/15/2007, p16 

    The article provides information on the performance of price earnings (PE). According to the author, depressed PE's shield the stock markets from extreme shock and sudden deflation of economic activity and functions as a support to restrict possible decline of prices to single digit. A table...

  • An attractively low p:e can oe misleading.  // Finweek;3/19/2009, p14 

    The article focuses on the efficacy of the price-earning (p:e) ratio in stock valuation. Analysts believed that p:e method is not reliable in evaluating the market value of stocks, for example an attractive p:e of between seven and 10 means that shares are cheap but it cannot be relied on...

  • Still the benchmark. De Klerk, Vic // Finance Week;2/9/2004, p33 

    Reports that the price-earnings ratios of different stock exchanges in the world show which countries offer value and which do not. Share price divided by the headline earnings per share; Price-earnings ratio of shares trading on the JSE Securities Exchange in South Africa; Reasons for the 10...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics