Sam Ro: Put The P/E Ratio In Timeout For Now

The forward price-earnings (P/E) multiple has limited value during normal times.

And the metric arguably has even less value during periods of elevated uncertainty.

That's because the E is based on analysts' estimates for the near future. And when the outlook for business is increasingly uncertain and rapidly changing, it can take time for many analysts to adjust that E.

This is especially the case right now as many companies have not yet factored the impact of tariffs into their guidance, which analysts lean on when they establish their earnings forecasts.

"We’ve been reading earnings call and conference transcripts closely since November across market capitalizations, sectors, and industries and feel fairly confident in saying that U.S. ...