Sambandet mellan aktiers PE-tal och avkastning på den svenska aktiemarknaden

Abstract

Background and discussion of problem: The conventional mindset among most investors has been to opt for stocks with low PE-ratios, but recent studies have found that stocks with high PE-ratios have given higher return both on the American and global stock markets. Therefore, the aim of the study was to find out if a similar trend could be observed on the Swedish stock market as it has been shown to exist on the American one. Purpose: The purpose of the study was to examine if a correlation could be drawn between a stock's PE-ratio and its return on the Swedish stock market during the last decade. Research question: In order to answer the purpose of the study, one main question was formed: ❏ Can a correlation be found between return and portfolios based on PE-ratios. Method: The study was based on a deductive research method. The research question was answered by gathering quantitative data from the screening tool Börsdata. The data gathered was of each stock’s total return for every period and the PE-ratio at the start of each period (see below). The periods analyzed was: ❏ 12/28/10 - 12/28/20 ❏ 12/28/15 - 12/28/20 ❏ 12/28/17 - 12/28/20 In the present study, every stock was excluded with a negative PE-ratio. In relation to this, as well investment companies as real estate companies were excluded. Result: In the present study, it was found that stocks with higher PE-ratios gave a higher return than stocks with lower PE-ratios, in the analysed intervals of three to five year period. However, for the analysed ten year period, it was concluded that stocks with lower PE-ratios gave higher return than stocks with high PE-ratios. Conclusions: The study concludes that stocks with high PE-ratios indeed have had a better return than stocks with lower PE-ratios in two out of three tested periods, and that the Swedish stock market shows trends similar to both global stock markets, e.g. the American stock market.