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The average P/E ratio for SPY companies is around 15. The price of the stock today is built on the earnings of the next 15 years, and most investors seem to bel
by nikanj 6y ago
The average P/E ratio for SPY companies is around 15. The price of the stock today is built on the earnings of the next 15 years, and most investors seem to believe we'll bounce back in a year or two.
- sytelus 6y agoGood investors don't rely on P/E ratios. At this point, GAAP earnings are basically becoming smoke and mirrors: https://www.forbes.com/sites/greatspeculations/2018/11/19/pe-ratios-are-misleading-especially-right-now/#312932502281 https://www.forbes.com/sites/greatspeculations/2018/11/19/pe...