The P/E approach is too complicated to be widely used in practice.

Question

Quizplus · Accepted Answer

While the P/E approach may involve some analysis and calculations, it is a widely used valuation method in finance and investing. It is commonly used by analysts, investors, and professionals to determine if a stock is overvalued or undervalued based on its current price relative to its earnings per share. However, it should be used in conjunction with other valuation methods to get a more comprehensive view of a company's financial health.

The P/E Approach Is Too Complicated to Be Widely Used