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10 Things They Don't Tell You About Stocks

Many Happy Returns

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The Flaws of the Price to Earnings Ratio

This chapter explores the limitations of the price to earnings ratio (P.E. ratio) when analyzing individual stocks, as it does not consider a company's debt. Instead, they suggest using the enterprise value, which takes into account the market cap, debt, and cash of a company, providing a fuller picture for valuation.

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