4 ms·

Zoom P/E ratio is 2k+. Seems overvalued?

• perl4ever 6y ago
  Compared to what? Plenty of companies are losing money and are highly valued, which is kind of like having a P/E that is greater than ∞.
  • lugged 6y ago
    Reality?
  • mewpmewp2 6y ago
    It's actually p/e in the negatives. Anyway people should stop using it as some kind of god metric. It is easy to justify cases where large or negative p/e makes sense.
    • perl4ever 6y ago
      I read once that there are negative absolute temperatures defined such that all negative numbers are (in a way) greater than all positive ones.[1] That is, the temperatures below absolute zero are actually hotter than +infinity. It seems reasonable to look at negative p/e numbers in a bit of a similar way, as being beyond infinity on a scale. [1]https://en.wikipedia.org/wiki/Negative_temperature https://en.wikipedia.org/wiki/Negative_temperature