What's a good P/E ratio to buy a stock at?
Unfortunately, there's no P/E ratio set in stone that makes a stock a buy if it's below, or a sell if it's above.
Often value investors and growth investors will look for different things in a P/E ratio.
- Value Investors - the lower the P/E ratio the better.
- Growth Investors - are much more likely to buy stocks with higher P/E ratios, believing the superior earnings growth more than justifies the higher cost.
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