The purpose of this paper is to consider the price-earnings ratio as a measure of stock valuation. Read: Lan, J. (2013, September). Introduction to stock valuation: The price earnings ratio. Retrieved from http://www.aaii.com/journal/article/introduction-to-stock-valuation-the-price-earnings-ratio. This assignment should be 1,250-1,500 words in length, in APA format, and discuss and address the following: 1.The Price Earnings Ratio (P/E) – what does it tell you? 2.The premise of value investing and how the P/E is related to it 3.The significance of a high and low P/E 4.The variations of the ratio, as explained in the article, including strengths, weaknesses and significance 5.Additional business and stock market factors that should be considered while interpreting the P/E 6.Your opinion of the proper role of the P/E in investing and the most effective P/E variation
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