Picking Winners - Part 3

Lynch 在這章裡介紹了 P/E 的不同應用以比較股價平貴；

P/E 跟公司分類的關糸
P/E for a slower grower (7 to 9)
P/E for stalwart (10 to 14)
P/E for fast grower (14 - 20)

P/E 跟盈利增長的關糸
The P/E ratio of any company that's fairly priced will equal its growth rate of earnings. In general, a P/E ratio that's half the growth rate is very positive, and one that's twice the growth rate is very negative.

If the p/e of Coca-Cola is 15, you'd expect the company to be growing at about 15 percent a year, etc...

All esle being equaly, a 20-percent grower selling at 20 times earnings (p/e of 20) is a much better buy than a 10-percent grower selling at a p/e of 10.

P/E 跟盈利增長及派息的關糸
Find the long-term growth rate (says, Company X is 12 percent), add the dividend yield (Company X pays 3 percent), and divide by the p/e ratio (Company X is 10). 12 plus 3 divided by 10 is 1.5.

Less than a 1 is poor, and 1.5 is okay, but what you'r really looking for is a 2 or better.