Hey guys and gals I am going to start building a trading bot soon and I am looking over fundamental analysis. The bot is going to be doing fundamental analysis only and before I build it I need to know fully understand the calculations that the bot will be doing? One thing I can't wrap my head around is how the P/E ratio is considered a multiplier. I have watched countless videos on this and still can't wrap my head around it. One person says it determines how much money you pay for 1 dollar for that companies earnings, and another guy said you can use it to gauge how long it will take for you to make that initial investment back? My question is both explanations that I heard true or is one only true? Please let me know.
Leave a Reply