INSIDE INVESTOR: How to tell if a stock is cheap or too expensive

Before investing in equities, it's important to determine the relative value of a stock to find out if it's overpriced. The PE ratio is an easy method to use.

Our share market may be stuck in the doldrums, drifting between 5,000 and 5,500.

But that listless overall performance masks some recent hectic activity. In fact, some of our stocks, and particularly our banks are among the most expensive in the world.


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