Company's with lower P/E ratios are usually better long term investments than those with higher P/E ratios.

Question

Quizplus · Accepted Answer

A lower P/E ratio does not necessarily make a company a better long-term investment. The P/E ratio must be considered in context with other factors such as the company's growth prospects, industry conditions, and overall market environment. High P/E ratios might indicate high growth expectations, while low P/E ratios could suggest undervaluation or underlying issues with the company.

Company's with Lower P/E Ratios Are Usually Better Long Term