4 ms·
I've never seen a years recouped metric in reference to P/E used in a professional context ever. You don't see it because you're holding everything static. Thi
by whatok 9y ago
I've never seen a years recouped metric in reference to P/E used in a professional context ever. You don't see it because you're holding everything static. This makes no sense (particularly in the case of growth stocks) because the whole point is that you're expecting growth in earnings and that number is going to wildly change over time periods and what earnings you use.
One of the biggest reasons why P/E is a relevant metric is that it enables you to easily compare stocks between one another.