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Depends on what you mean by "decline". But if you're talking about stock price, then the current Shiller PE Ratios are: Amazon = 238.08 Netflix = 219.32 Google
by sciolizer 5y ago
Depends on what you mean by "decline". But if you're talking about stock price, then the current Shiller PE Ratios are:
Amazon = 238.08
Netflix = 219.32
Google = 73.95
Facebook = 68.36
Apple = 63.17
The Shiller PE Ratio of the S&P 500 is current ~30. All of these companies are overpriced, and Amazon and Netflix significantly so.
- jandrewrogers 5y agoPE ratios are only meaningful for comparing companies with no revenue growth, which is well-understood by investors. For companies with insanely high revenue growth, like Amazon, a PE ratio is essentially meaningless because that growth is financed with earnings. The fact that Amazon is only trading at 3.7x revenue is a strong argument that it is underpriced given its revenue growth, not overpriced.