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I’m not sure I follow. If capital gains are strongly correlated with profit after taxes, shouldn’t price to earnings ratios be somewhat similar? For instance,

I’m not sure I follow. If capital gains are strongly correlated with profit after taxes, shouldn’t price to earnings ratios be somewhat similar? For instance, GM has a past year p/e of 13 and Tesla has a p/e of 943.

WalterBright 5y ago
Higher p/e's are based on expected future earnings. The two converge sooner or later.