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• Screening For Misvalued Stocks by Martti Luoma and Reijo Ruuhela

  ARTICLE SYNOPSIS ...Valuing A Stock Using Earnback Periods Screening For Misvalued Stocks by Martti Luoma and Reijo Ruuhela You won't get an edge on finding good trades using the same tools everyone uses. Here's a new look at finding misvalued stocks. T he price/earnings ratio (P/E) is undoubtedly the most common valuation measure of a stock, and also the most commonly misused. P/E combines outside information (price) and inside information (earnings). Because of the central roles that price and earnings play, it is not particularly surprising that the use of P/E is so popular among analysts and investors. It...

AUTHOR: Martti Luoma and Reijo RuuhelaDATE: MAY 2001SUBJECT: New Technique