Investment Essentials: Fundamental Analysis

Now that we are making our way to the end of the investment essentials series, we can now get into the best part - picking stocks to purchase. One of the best ways to do so is by using a process that is referred to as fundamental analysis. It is probably one of the most widely accepted ways of evaluating a stock.

Price to Earnings Ratio - P/E

In my last article, I reviewed the method I use to pick stocks for the Cookie Jar portfolio. One of these items was using the P/E ratio as a factor to determine whether a stock is worthy. Today I want to dive in deeper into P/E ratios: what they are, how to use them, and all in all breaking them down.