I understand the approach.. it sounds like it’s evaluating the ‘current state’ of the company.. there are experts out there that can predict that state quite a while before it happens and thats why they invest.. so by the time the individual investor get there, it’s probably too late too really see a significant gain.. also, P/E can mean that all the investors sold off the stock since they don’t see much potential in it for the future.. ‘milked cow’

Just like when XOM reported record earnings.. the stock If I remember correctly was down a little bit the next day.. that’s because the profits had alreay been priced in… in some cases of companies with low P/E, the future losses might already be priced into the stock.

When I first started investing I was advised by someone who didn’t know what they were doing.. and they told me good P/E = always win, and I discovered through losing a little money that isn’t always true.