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For reference the S&P average P/E is ~25.96. FB at it's worst is growing much faster than average, it's balance sheet is healthier than almost every other comp
by onlyrealcuzzo 5y ago
For reference the S&P average P/E is ~25.96.
FB at it's worst is growing much faster than average, it's balance sheet is healthier than almost every other company beside MAAG, and yet it is valued below average.
- pembrook 5y agoAlso for reference, the entire rest of the world outside the US has an average P/E of 14.5 right now. Make of that what you will. Also, re: the parent comment, a P/E of 22 would traditionally never be called "value stock territory"...whether or not that valuation is too pessimistic about Facebook's growth prospects.
- grey-area 5y agoThat PE means it is grossly overvalued, concentrated in a few large tech companies. Saying pe 22 is value territory just illustrates the massively distorted current market. Historically, around 15 is the mean, not 25 https://www.multpl.com/s-p-500-pe-ratio https://www.multpl.com/s-p-500-pe-ratio