4 ms·
P/E ratio of almost 40? Seems crazy to value the largest tech company in the world at a price where you wouldn't see your money back for 40 years. Do they reall
by serjester 6y ago
P/E ratio of almost 40? Seems crazy to value the largest tech company in the world at a price where you wouldn't see your money back for 40 years. Do they really have enough room to grow to offset that? Seems unlikely to me, but then again you don't see me shorting it :)
- c1b 6y agoYou're thinking about this wrong. P/E 40 is comparable to an interest rate of 2%. Would you rather take 0% from bonds?
- sudosysgen 6y agoOnly if you expect that the company can survive 30 years at the current level.
- cryptica 6y agoP/E ratio is irrelevant these days, they can just do buybacks. Then they never need to pay dividends. If people want to cash out, they can just sell their shares back to Apple. It's more tax efficient too (capital gains instead of income tax). This can work even if earnings were 0.