Investors Uncover Best Food and Beverage Stocks Using Price Earning Ratio
Stock exchange investment can be more profitable than saving money in a bank. By using the Price Earning Ratio (PER) method, investors can easily determine which shares to buy. A study on food and beverage companies in the Indonesian stock exchange found that out of 15 listed companies, only 6 pay dividends annually. By comparing the PER to different benchmarks, it was discovered that only one company had a PER lower than the benchmarks, indicating a higher return on investment. Conversely, 5 companies had PER values higher than the benchmarks, suggesting they are not good buys but could be sold for profit.