2 ms·
The slope of your line is basically (EV/Revenue)/(Profit/Revenue) => EV/Profit which sums up what this article should have been about: P/E ratios are what actua
by boulos 11y ago
The slope of your line is basically (EV/Revenue)/(Profit/Revenue) => EV/Profit which sums up what this article should have been about: P/E ratios are what actually matter. All the other terms just let you thread the needle between a company that's heavily reinvesting (where P may be misleading) versus one that's generating so much cash it can't imagine putting the rest to good use (Apple, Google, to some degree Facebook). Still, I definitely agree that your chart or something like it is what I expected from the article.