I’ve compiled a few different measures of valuation for your consideration. Regular readers know that I am not much a “value” investor. Value, in my opinion is in the eye of the beholder. Is Apple cheaper at a high PE than GE at a low valuation? Perhaps yes, perhaps no. Most valuation metrics are based on the guesses of the analyst community – something that I believe is entirely unreliable. Nonetheless, here are a few measures to help you put things in perspective:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.