The bigger point is that the P/E ratio doesn’t have much predictive value for finding elite superperformance stocks. There is no magic number when it comes to the P/E. In fact, the P/E is far less important than a company’s potential for earnings growth. Stop worrying about the P/E ratio. If you have a company delivering the goods as Apollo Group did, earning 40 percent per annum for four or five consecutive years, whatever the initial P/E was is irrelevant; the P/E takes care of itself. Leave the overintellectualizing and complex theories to the professors and academicians and the valuation
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