The Most Misunderstood Metric In Finance - The P/E Multiple

So you fancy yourself a valuation expert?

If I had a dollar for every time someone threw around a P/E multiple like it was the gospel truth, I’d have another island in the Carribean (okay … I’d have my first one). The price-to-earnings (P/E) ratio is everywhere—flashed on CNBC, jammed into analyst reports, and worshipped by retail investors who think they just found the next ten-bagger because …