This article is 7 years old. As we are in a rapidly-changing industry, the information contained in this article may no longer be relevant. Please keep this in mind while reading.

 

“The arithmetic here is deceptively simple. If a company’s earnings will increase 15% this year, and if the P-E ratio remains unchanged, then presto! The “investment” shows a 15 percent performance, plus the small dividend. If the P-E ratio advances—as it did for Avon in almost every year–the performance becomes that much better. These results […]