A Low P/E Ratio Isn't Always a Good Deal

A stock could have a P/E of 10 and still be a terrible investment. In this episode, I explain why the P/E ratio—while simple—isn’t enough on its own. A low number might look like a bargain, but without context, it could signal a dying business. I show how I use The 37 Percent Method to compare a company’s P/E to its own history, its industry, and the broader market to find real value—not just a cheap price. Next episode, I’ll break down what actually makes a P/E high or low.