Executive Summary
- If we’re going to use valuation metrics to make important financial planning and investment decisions why wouldn’t we use the most reliable metrics at our disposal?
- The Price/Sales ratio has a much higher correlation to actual subsequent returns than Price/Earnings.
- Price/Sales, and other reliable metrics, indicate the U.S. stock market is more expensive than it’s ever been in history.
Continue reading “Price/Sales is Better Than Price/Earnings…for forecasting future returns”