Investing Club Mailbag: How to avoid pitfalls when calculating stocks' price-to-earnings multiples

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Constellation Brands’ Corona Light is displayed for sale at a grocery store in New York.

Scott Eells | Bloomberg| Getty Images

On the January 5th, 2023 Morning Meeting, you talked about stocks that had high P/E’s being too expensive and cited an example. You then promoted STZ as a “buy.”

  • Isn’t the P/E extremely high?
  • My research says its P/E (not Forward P/E) is around 500. Is my resource wrong?