What are the risks associated with investing in companies with extremely low P/E ratios?

Jan 4, 2024 ... In very general terms, a high P/E ratio indicates a stock is expensive, while a low P/E ratio suggests that it is inexpensive. However, it's ... Nov 29, 2006 ... There's some good and some bad news for investors in property. The good news is that real estate prices are expected to keep going up even ... Jan 14, 2025 ... Determining what constitutes a “good” P/E ratio depends on several factors, including the industry, the company's growth prospects, and market ... ... the best financial ratios can help determine if price is in line with value. Some popular ratios include price-to-earnings (P/E) ratio, price/earnings-to ... P/E ratio, 15, 10. Even though Company B's shares are more expensive, they're better value. You're paying less for each pound of profits. It can sometimes be ... However, a P/E ratio below 15 is considered cheap and stocks with a P/E ratio above 18 are considered expensive. Which PE ratio is good high or low? May 18, 2022 ... Over history, the average P/E ratio of the stock market has been around 15-17. But the average P/E of the stock market has fluctuated for many ... There is no universal answer for what is a good PE ratio; thus, an investor should consider it alongside other financial metrics and factors when making ... What Is a Good Price-to-Earnings Ratio? The answer depends on the industry ... "S&P 500 PE Ratio - 90 Year Historical Chart." Yahoo Finance. “FedEx ... A P/E ratio is a good back-of-the-napkin estimate, but it doesn't give a ... pe-ratio. https://www.investor.gov/introduction-investing/investing-basics ...