The general stock market is around 21 P/E ratio right now as it hits all time highs which was also the same P/E ratio before the stock crash in 2008.
It seems to me like stocks are overbought right now on this basis because on average a P/E ratio of 14 or so is more of a fair value. while anything above that starts to become overvalued.
I have owned stock in Discovery Communications(discovery channel/animal planet and many other cable chanels) for years and it has performed very well from the lows in 2008. But its P/E ratio is really high right now at 31. So my question is how important is this when evaluating whether or not to sell or for measuring what the future value of this stock could be? Thanks for any investment input members here have to offer.
http://finance.yahoo.com/q?s=DISCA
It seems to me like stocks are overbought right now on this basis because on average a P/E ratio of 14 or so is more of a fair value. while anything above that starts to become overvalued.
I have owned stock in Discovery Communications(discovery channel/animal planet and many other cable chanels) for years and it has performed very well from the lows in 2008. But its P/E ratio is really high right now at 31. So my question is how important is this when evaluating whether or not to sell or for measuring what the future value of this stock could be? Thanks for any investment input members here have to offer.
http://finance.yahoo.com/q?s=DISCA
Game/red pill article links
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