are near the high end of their historical ranges.
Last week, however, they were trading 2 to 3 percent lower of their sectoral average price-earnings ratios
Ghalibaf Asl also said the price-earnings ratios
showed stock prices were not over-inflated and that he didn't think the stocks boom was a bubble.
The second covers price-earnings ratios
, market-to-book ratios, and stock returns; earnings and stock returns; and fundamental analysis and stock returns.
This implies a preference for large-cap stocks at the expense of mid and small caps, and for companies with low price-earnings ratios
and high yields.
They tend to sell shares in large firms, in firms with high price-earnings ratios
and in firms with high market-to-book ratios.
Analysts who hold this view point out that, in the past, high price-earnings ratios
have usually been followed by slow growth in stock prices.
by themselves are not effective predictors of stock market value.
Investors should mix their holdings to include about 30 percent technology stock, some value stocks that have low price-earnings ratios
and solid industry leaders, Christopher said.
Determinants of Price-earnings Ratios
in the Oil and Gas Industry.
Based on some preliminary findings, such firms have lower price-earnings ratios
and smaller appreciations in market value over time than profit-oriented firms.
Milne also warns that it's unrealistic to value a private company by relying on the price-earnings ratios
that prevail among public companies.