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Investment Valuation Ratios

This week, Investor Trader invited Graeme Pietersz from Money Terms to share some of his experience in choosing which ratios to use when valuing different investments. A novice investor can often ask the wrong question about how to value shares, looking for one ratio to rule them all. Unfortunately, many articles on the subject do answer this question, and promote one particular valuation method: sometimes a simple ratio, sometimes something a bit more complex. The right question to ask is "which valuation method is appropriate in the circumstances?". What you use depends on what your strategy is and what sectors you are...