In this quiz shortened session, we continued our discussion of PE ratios by looking at the distributional characteristics of PE ratios as well as the drivers of PE, arguing that its determinants are growth, risk and payout/ROE. A cheap stock is one with a low PE, high growth, low risk and a high ROE and that becomes the foundation for screening for cheap stocks. If you want to read up more on screening, try this blog post: http://aswathdamodaran.blogspot.com/
