Hello,
I am starting this topic for education purposes only. I recently learned about P/E ratio and the Price to Free Cash Flow ratio. With that knowledge, I looked up two organizations to compare and practice what I learned (so far):
- JPM (JPMORGAN CHASE & CO) :
- P/E ratio of 11.67 and FCF ratio of $36.12
- FCF pulled from seeking alpha
- P/E ratio of 11.67 and FCF ratio of $36.12
- BAC (Bank of America)
- P/E ratio 10.72 and FCF ratio of -$0.78
- FCF pulled from seeking alpha
- P/E ratio 10.72 and FCF ratio of -$0.78
With the above figures, would the educated investor assume that JPM is the healthier financial organization and therefore, it is the more lucrative option for investment? Are there other factors to be evaluated/reviewed?
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