4 ms·
Out of curiosity, why ~20?
by jklein11 10y ago
Out of curiosity, why ~20?
- quantumhobbit 10y agoP/E ratios are around 20 on average I suppose. Meaning earnings are 5% of the market cap of a stock. GDP doesn't directly correlate to earnings though.
- arjunnarayan 10y agoIt's just a rule of thumb as to what long run P/E ratios look like in the equity markets.
- ThrustVectoring 10y agoHistorically, $20 is the price of something that gives you $1/year. This, like, goes back to the medieval era.