Stock Investment Based on Price-Earnings Ratio

The Price/Earnings (P/E) ratio is one of the most popular and oldest methods used in the valuation of companies and indices today. It is also one of the valuation ratios that has been studied the most under the anomaly heading in financial literature. While the results of literature studies may vary from country to country and over time, the general result is that stocks with a low P/E ratio provide returns above the market average. In a significant portion of these studies, portfolios were created based on the single factor, the P/E ratio. In our Course, investment strategies based on the P/E ratio will be explained by testing them on the Queenstocks Professional program, considering both single and multiple factors (such as the P/E ratio and growth rates). This Course aims to explain what the most used P/E ratio in the stock markets is, how it is used, its advantages and disadvantages, and how to create a strategy with the P/E ratio. Strategies will be created in the light of short technical knowledge to increase investors' returns, and the results will be tested on the BIST Stock Exchange and shared.