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Welcome to the value investing world, SpikeOut! Kudos to starting at such a young age!
You can read more about value investing from books. I would recommend "The Neatest Little Guide to Stock Market Investing" for a start.
P/E ratio in itself cannot tell u much about a company. U need to look at the financial statements and know how to get information from there. For that, I would recommend "Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage". U can screen stocks using P/E ratio but u still need to delve into the companies thoroughly to find undervalued companies and value them using a valuation method. Personally, I use discounted cash flow method to find intrinsic value.
You can read more about value investing from books. I would recommend "The Neatest Little Guide to Stock Market Investing" for a start.
P/E ratio in itself cannot tell u much about a company. U need to look at the financial statements and know how to get information from there. For that, I would recommend "Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage". U can screen stocks using P/E ratio but u still need to delve into the companies thoroughly to find undervalued companies and value them using a valuation method. Personally, I use discounted cash flow method to find intrinsic value.
Visit my personal investing blog at http://financiallyfreenow.wordpress.com now!