Should You Buy Crius Energy Trust (TSE:KWH.UN) At This PE Ratio?
Kristin Rankin, 21 June 2018
Crius Energy Trust (TSE:KWH.UN) is currently trading at a trailing P/E of 5.7x, which is lower than the industry average of 101.3x. While this makes KWH.UN appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. Today, I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio. The P/E ratio is one of many ratios used in relative valuation. By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings.
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