CIO-U.S. and PM Bill Nygren discusses the wide spread in valuations in today’s S&P 500 and the opportunity it may provide for the patient value investor.
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The price to earnings ratio (“P/E”) compares a company’s current share price to its per-share earnings. It may also be known as the “price multiple” or “earnings multiple”, and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.
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