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Facebook price/earnings is ~25. How is that an absurd market valuation? I don't think this xcheck system is designed to appease the most toxic influencers unle
by changoplatanero 5y ago
Facebook price/earnings is ~25. How is that an absurd market valuation?
I don't think this xcheck system is designed to appease the most toxic influencers unless you consider people like Cristiano Ronaldo or Ariana Grande toxic.
- titzer 5y agoP/E is meaningless because it doesn't normalize to the number of shares. What you want is the price to sales ratio, which normalizes for market cap. And yeah, tech stocks are ridiculously overinflated compared to every other sector of the economy. Facebook ranks #3 in P/S ratio even in the tech industry. So yeah, it's an absurd market valuation based on speculation of growth.
- s1artibartfast 5y agoHow is P/E not normalized? IT is literally the ratio of a company's share (stock) price to the company's earnings per share
- mrfox321 5y agoP/E does normalize by market cap. Earnings is actually earnings per share.
- deleted 5y ago[deleted]