--- title: "Meaning & Key Takeaway of: The price earning multiple must be less…" description: "\"The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.\" — Peter Cundill" image: "https://sms4smile.com/quotes/i/0c3/peter-cundill-18943_corporate_the-price-earning-multiple-must-be-less_1056560.jpg" --- # The price earning multiple must be less than ten or the… ![“The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.” quote by Peter Cundill](https://sms4smile.com/quotes/i/0c3/peter-cundill-18943_corporate_the-price-earning-multiple-must-be-less_1056560.jpg) [Download](https://sms4smile.com/quotes/i/0c3/peter-cundill-18943_corporate_the-price-earning-multiple-must-be-less_1056560.jpg) [Open image](https://sms4smile.com/quotes/i/0c3/peter-cundill-18943_corporate_the-price-earning-multiple-must-be-less_1056560.jpg) > “The price earning multiple must be less than ten or the inverse of the long term corporate bond rate, whichever is the less.” [Peter Cundill](https://sms4smile.com/quotes/author/peter-cundill/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. A valuation rule: price‑earnings ratio should be under ten or below the inverse long‑term bond rate. **In simple terms:** Use low P/E or bond‑rate rule for pricing. Key Takeaway Apply strict valuation thresholds. Themes finance valuation investment Mood analytical pragmatic Type financial educational When to use this quote - stock analysis - portfolio construction - financial planning - risk management Key Concepts price‑earnings bond yields risk assessment Questions to Reflect On - Is the rule universally applicable? - How to adjust for industry differences? 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