Value investing for beginners
Our companies and markets editor, Richard Beddard, offers a succinct guide to value investing.
Word of the Day
The share price divided by the earnings per share. It is a measurement of how highly a share is valued. A high P/E suggests that investors believe a company has good prospects of achieving above-average growth in the future, even if earnings are not that high at the moment. Strong demand for the company's shares pushes the price up.