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My “not meaningful” point should perhaps been “can’t conclusively draw data from it alone” or “don’t make investment decisions based on this metric only” and I’
by garmaine 9y ago
My “not meaningful” point should perhaps been “can’t conclusively draw data from it alone” or “don’t make investment decisions based on this metric only” and I’d stand by that.
- prklmn 9y agoP/E is without a doubt meaningful, and looking at it in the context of growth i.e. PEG, makes it even more meaningful. Amazon is selling at an objectively absurd PEG ratio of 5. Anything over 2 is fundamentally considered overvalued by people who use this metric. However, You could argue that none of the fundamentals are meaningful because we are in a bubble, with Amazon on the forefront.