Benjamin Graham鈥檚 The Interpretation of Financial Statements
Always ensure you are downloading a legal copy. Many reputable financial archive sites offer this text for free or for a nominal fee. The value is not in the paper鈥攊t is in the 80-year-old wisdom that still holds up against modern GAAP standards. the cheap P/E is a trap.
Look at the Cash Ratio. (Cash / Current Liabilities). Can they pay their bills tomorrow? If not, the cheap P/E is a trap. the cheap P/E is a trap.