Accessibility Menu
 
Arrow-Thin-Down
S&P 500
7,138.80
-0.5%
-35.11
Arrow-Thin-Down
DJI
49,141.93
-0.1%
-25.86
Arrow-Thin-Down
NASDAQ
24,663.80
-0.9%
-223.30
Arrow-Thin-Down
Bitcoin
$77,532.00
+1.4%
+$1,079.32
Arrow-Thin-Down
AAPL
$270.83
+1.2%
+$3.22
Arrow-Thin-Down
AMZN
$259.70
-0.5%
-$1.42
Arrow-Thin-Down
GOOG
$347.50
-0.3%
-$1.02
Arrow-Thin-Down
META
$671.34
-1.1%
-$7.28
Arrow-Thin-Down
MSFT
$429.55
+1.1%
+$4.73
Arrow-Thin-Down
NVDA
$213.48
-1.4%
-$3.13
Arrow-Thin-Down
TSLA
$376.02
-0.7%
-$2.65
Most Active StocksDaily Stock GainersDaily Stock Losers

Is P/E Really the Best Tool for Picking an Undervalued Stock?

Is this the best metric to look at to know if a stock is cheap?

By Brendan Byrnes – Feb 24, 2013 at 1:00PM EST

In an interview with Wesley Gray, author of the book Quantitative Value, Fool editor and analyst Brendan Byrnes asks Gray to elaborate on the best valuation metric to use in evaluating a company's stock.

Gray discusses a study he performed with author Jack Vogle in which the two analyzed different valuation metrics. The conclusion may surprise you.

Read Next

About the Author

Brendan Byrnes
Brendan Byrnes is the Managing Director of Motley Fool Money, where he oversees business strategy and editorial operations. Since joining The Motley Fool in 2011, he has written hundreds of articles, provided market and investing analysis, and appeared on CNBC and FOX. Earlier in his career at The Motley Fool, Brendan interviewed leading executives and thought leaders across the investing and business landscape. He holds a degree in Finance from Virginia Tech.
TMFNiner

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
NYSE: F
$12.40
(-0.76%)-$0.10
Caterpillar Stock Quote
Caterpillar
NYSE: CAT
$817.87
(-1.32%)-$10.92
General Motors Stock Quote
General Motors
NYSE: GM
$78.95
(+1.27%)+$0.99

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

View Premium Services