3min chapter

Two Quants and a Financial Planner | Bridging the Worlds of Investing and Financial Planning cover image

The Market is Expensive: Should You Care? | The Practical Implications of Market Valuation

Two Quants and a Financial Planner | Bridging the Worlds of Investing and Financial Planning

CHAPTER

Understanding the Correct Calculation of Portfolio PE Ratio

The chapter delves into the proper method of calculating the PE ratio of a portfolio, stressing the significance of earnings yield and weighting of positions. Emphasizing accuracy in valuation, it points out common errors in PE ratio calculations and suggests creating a 'nerd corner' for in-depth discussions on technical subjects.

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