The Truth About P/E Ratios! Must Watch for Investors

Рет қаралды 40,266

Күн бұрын

Have you ever avoided a stock with a very high P/E ratio only to see the price double? Have you also bought a stock because it had a low P/E ratio, only to see the price fall by half?
One of the most common mistakes investors make is to use P/E ratio as a way to value a stock and to make buy and sell decisions. In this video, you are going to learn how P/E ratio can be very misleading and the right way of how to find great stocks that are cheap!
========================
Stock Investing & Trading insights by Adam Khoo will show you profitable trading and investment opportunities in today's stock markets.
These are essential strategies for stock traders and investors who want to improve their investment and trading performance.
Adam Khoo is a professional stock investor and options trader and the best-selling author of 16 books including 'Winning the Game of Stocks" and "Profit from the Panic". Thousands of students have profited from his sharp investment insights into the world of stock market investing and trading.
=====================
Sign Up For Piranha Profits Online Courses
📗 Value Investing: bit.ly/PPVMI
📙 Options Trading: bit.ly/OptIronL1
📘 Price Action Manipulation: bit.ly/PriceActionML1
=====================
💻 Join Our Wealth Academy Live Seminars
www.wealthacademyglobal.com
=====================
🧑‍🏫 Visit Adam Khoo Learning Technologies Group
www.akltg.com
=====================
Follow Me On Social Media
🌟 Facebook: / adamkhoosuccess
🌟 Instagram: / adamkhoosuccess
=====================
Follow Piranha Profits On Social Media
🐟 Facebook: / piranhaprofits
🐟 Instagram: / piranhaprofits
🐟 Discord: / discord
🐟 Telegram: www.t.me/piranhaprofits
=====================
👉 If you've found this video helpful, please LIKE, SHARE, & COMMENT
👉 SUBSCRIBE to my Channel for more Market Analyses & Investing Strategies
👉 Click on the NOTIFICATION BELL to get notified whenever I upload a new video
=====================
💸 MAY THE MARKETS BE WITH YOU! 💸

Пікірлер: 61

@danielrankin857 11 ай бұрын

There's always something to learn from Adam. I find his perspectives have great value.

@outbackenduro7418 Жыл бұрын

18:40 "Unrealized profit" Your investing approach is working. Wishing you well in the future.

@chiragmehta8212 Жыл бұрын

Amazing video. Ty. I never understood these concepts until now. Ty do much

@thebigbadwolf123 Жыл бұрын

Great video. The one thing I would like to ask is that in the above example the PEG ratio is still quite high at 22 for CRM. Ideally, I think you mentioned in an earlier video you should not have a PEG greater than 2

@tonymai6253 Жыл бұрын

Thank Adam

@Tonitinsood Жыл бұрын

Hi Adam, thanks, good video. I though disagree on the free cash flow calculation, as you should take out stock based compensation while calculating FCF as that would be a genuine expense to shareholders.

@turtletrader3820 Жыл бұрын

I like your videos as they are not only informative but also entertaining. In last 5-10 years if one has invested in FAANG, he doesn’t need a brain to make money. Or if you invest in top 1%, one also don’t need to learn anything. Coming to CRM in last 2-3 years it has gone up then down and up again like several other companies. If i see it fundamental it is least profit making company in last 7 years. If you want to lock people to attend your courses then it is a good video 😂

@limtsekit6719 Жыл бұрын

Useful information and great sharing as usual! Proud to be in your community

@quantum7401 Жыл бұрын

❤ Adam Khoo

@jefm3598 Жыл бұрын

Great education

@relaxingnature7894 Жыл бұрын

Mr. Adam can you please make a video how to choose a best broker for investing and trading ❤ And also about which broker you use for trade and investment.❤ It will be helpful for many people whom follow your guideline . ☺️ And also Thank you soo much for sharing with us your precious knowledge and experience 💖💖💝

@chamade166 Жыл бұрын

Vanguard is predicting low market returns going forward at ~5.5%/year. Any thoughts on that?

@TheMightyMedia Жыл бұрын

Hey Adam, pls do a video on Estée Lauder! Thank you

@walter6586 Жыл бұрын

Hi Adam, great video but I have one question. Why are you using 7% discount rate?

@jjchuy6322 Жыл бұрын

the 551 e/p ratio that you point, if you look back at the same line s&p 500 not workforce . please correct me if i looked at the wrong line

@mosmochiliu3661 Жыл бұрын

Thank for you sharing. I'm your reader from Taiwan, I have a question is that whether leveraged ETFs are better choice than normal ETFs? There are so many discussion talking about this like s&p500 2x is better than s&p500 ,and I thought leveraged ETFs are not good choice but I cannot actually explain why. In Taiwan,0050 and 00631L is a example as well. Many people think leveraged etf 00631L definitely better than 0050,and thought it can be a long term invest. They think the disadvantages of leveraged etf can be ignore or cancel by some reason so that leveraged etf is better than normal etf.

@imirosmanov2745 Жыл бұрын

PLTR +99%. Thanks to Adam's recommendation.

@naironnai Жыл бұрын

Thank you. Good explain

@ivanseow9523 Жыл бұрын

Adam, what are your thoughts on Qualcomm?

@googlytrader Жыл бұрын

Good fundamentals

@KTMNomad Жыл бұрын

Adam, you do an amazing job in your explanations. Even veterans of the market like myself enjoy hearing you explain concepts that took a long time to really understand or had to learn the hard way. Thank you for your time and effort.

@AdamKhoo Жыл бұрын

I appreciate that!

@3beans-yk8fg Жыл бұрын

Hi Adam, been a fan of you and only you since I ever first laid eyes on your video, can you do a video on Cathy Woods Arkg and Arkk?

@kevidiep572 Жыл бұрын

How long will this Bull market run Adam?

@Ismael-uj6fv 20 күн бұрын

Hi, thank you very much for your video. I have a question regarding the indicator you are using, what's the name of the P/E indicator you are using? Thanks

@vijeykumar1 Жыл бұрын

Can just use PEG ratio?

@rockyrock2874 Жыл бұрын

What I do not understand is why do I have to add them all up if I only bought the stocks at one time and let it compound?

@tehbeng3614 Жыл бұрын

The stock market values the stocks based on the PE ratio never based on accounts.) If used PE of 10, the co make $ 1 the mkt values the profit as $ 10. So you can see the market value of $ 10 is just a guessing figure. If we used PE of 20 the mkt value become ,$ 20. The market value of stocks is actually a scam. Unlike commodities or currencies.

@sheresepid Жыл бұрын

I like your videos, but I think your valuation model is flawed. You are using EPS growth to calculate FCF growth which might not be true. I think it would be better if you forecast all the individual components of CF like revenue, capex, etc. Anyways, thanks for your videos. There are always something to learn.

@percivalmvoco2569 Жыл бұрын

Thanks 🙏 Adam

@bettystiles6496 Жыл бұрын

*My friend. I appreciate the time you spend on keeping us informed about the economy. As of today. I count on $15,000 what do you suggest me to invest in?*

@hraqhraq Жыл бұрын

Any new videos, we need some more insights for the market direction? A lot of FUD in media, need your insights please

@tomwu1774 Жыл бұрын

Salesforce makes frequent acquisitions in order to obtain their high growth rate. The average for the past 10 years is almost $5 billion a year. Should this acquisition cost be normalized and treated as part of Capital Expenditures cost? You added back its amortization, but never accounted for the acquisition costs. Is that the right way to estimate the Free Cash Flow for the future?

@user-gl2bz5vb5l Жыл бұрын

Basic knowledge.

@williamtanchongyang5465 Жыл бұрын

did you ask followers to buy SPCE?

@jjchuy6322 Жыл бұрын

sorry i meant sellsforce

@karannishad1066 Жыл бұрын

Dear Adam sir❤ I want to invest in us stock I m from india How to invest in us stock please guide me sir

@thebigbadwolf123 Жыл бұрын

Get an ibkr trading account

@mystic_subliminal Жыл бұрын

I will not buy at this prices. Period

@Rhino11111111 Жыл бұрын

PEG ratio > PE ratio.

@luxurylife7464 Жыл бұрын

That’s what Peter lynch would base his valuation on. PEG ratio is more accurate.

@lllleooosss Жыл бұрын

1:35 in basic finance school p/e isnt even discussed, it’s all beta and all that bs 😂. I think using all the stock Which later justified that p/e is a bit biased. But it’s true what you say, buying based only on p/e is a suicide, however once you checked everything is good, p/e is important to check too.

@Bronceado7184 Жыл бұрын

why he delete and post the same video again?

@WanderlusttheWorld Жыл бұрын

Dod u read his community post?

@rxn-iwnl-1024 Жыл бұрын

Calc error in the original

@jjchuy6322 Жыл бұрын

sorry my mistake i got confused

@acestarnest Жыл бұрын

nvda all the way to moon

@tonynunez6539 Жыл бұрын

The P/E ratio is not a good stock value indicator. The MACD is. Why don't you do a video on the MACD?

@ShopAmericanGirl Жыл бұрын

I usually like your videos but i think this is advertisement for people to buy into this rally at extreme prices. everything is overvalued right now, to anyone considering jumping in.

@WanderlusttheWorld Жыл бұрын

Everything? Did you do valuations to each companies?

@Klaster961 Жыл бұрын

PayPal, Meta, Google

@lw7028 Жыл бұрын

SS&C, MNST are undervalued

@tanpingyi4771 Жыл бұрын

@@babyprince84ukplenty. MDT EL

@lootster Жыл бұрын

@@babyprince84uk $TSLA

@CDESHMUKH13 Жыл бұрын

CRM doesn’t grow organically anymore .. they only grow by acquiring companies so their amortization cost might never go away as they keep acquiring… they don’t have the same growth with higher interest rate .. CRM will trade better if interest rates are low .. I would rather bet on VEEVA or SHOPIFY ..