There is empirical evidence that low P/E stocks have outperformed high P/E stocks for some historical time periods.

Question

Quizplus · Accepted Answer

Various studies have shown that low P/E stocks have outperformed high P/E stocks over long-term historical periods, such as 5-10 years or more. However, this may not hold true for all time periods or specific market conditions. Additionally, other factors such as company fundamentals and macroeconomic factors should also be considered when making investment decisions.

There Is Empirical Evidence That Low P/E Stocks Have Outperformed