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QuestionsCategory: Exit StrategiesLook Back Period for company's PB and PE ratio
Chee Hong Choy asked 4 years ago

Hi,
When ploting PB and PE chart, what is the look back period should I use? Sometimes the Mean and Std Dev figure would differ greatly depending on the look back period we choose and that will cloud my decision to sell.
Thanks

Jieren Zheng replied 4 years ago

I normally use 5-10 years, as well as crisis and peak (extremes for information), as a simple gauge

Victor Chng replied 4 years ago

Thank you JR

Jieren Zheng replied 4 years ago

welcome :)

1 Answers
Victor Chng answered 4 years ago

Hi Chee Hong,
 
i usually try to get minimum 5 years but if I have a longer period that would be preferred.

Chee Hong Choy replied 4 years ago

Noted. Thanks