P/E, Shmee/E!

Take your first step to investing knowledge, confidence, and results. Long-time successful investor and Motley Fool Advisor Tom Jacobs uses his effective teaching skills to engage, amuse and enlighten investors who want to go to the next level. No business buyer uses P/E, so why should you--a potential business buyer through your stock purchase--do the same? Learn why P/E is useless at best; that cash and debt matter, so replace P with EV; that cash, not accounting income is king, so replace E with FCF; and then joyously bury P/E once for all and embrace the power of EV/FCF. Enjoy this clear, easy first step on the way to better investing. Tom Jacobs is Lead Advisor of Motley Fool Special Ops, a special situations and investing service, and outperformed the S&P 500 by 10 points annually prior to starting Special Ops at TMF.