How to Find Undervalued Stocks by using Price-to-Earning (P/E) Ratio?

Here is a question.

I have two stocks: Stock A and Stock B.

Stock A is trading at $ 1.00 a share. Stock B is trading at $ 10.00 a share. Which of the two stocks is cheaper?

What would your answer be?

If your answer is ‘Stock A’, please read on. I’ll share how most investors, sincere as they are, fail to achieve consistent returns from investing in the stock market today.

Perhaps, you may ask: ‘Can Stock B be possibly cheaper than Stock A?’

The answer is ‘Yes’.

If you are a savvy investor, you may request for more information regarding the two stocks before answering the question above. It is not possible to determine which of the two stocks is cheaper by knowing their current share prices alone.

This, I believe, is one of the biggest mistakes that most people make when they are investing in the

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