When is it time to buy, sell or hold?

How do you know if the share price is too high; with PE ratio as a guide, future earnings, sales growth, debt/equity ratio, etc? Or, is there something else that is a helpful guide to determine if the stock is a hold, sell or buy?

A: There is no right or wrong answer.


More common measures around pricing include PE and Price/Book.


In terms of whether it can justify a high PE or PB, you would look at sales or revenue growth, return on equity, EPS growth etc, and in particular, how these compare to their competitors.



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