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"stock prices are a prediction of future profits." No better prediction of future profits, than current profits.
by koheripbal 4y ago
"stock prices are a prediction of future profits."
No better prediction of future profits, than current profits.
- Retric 4y agoIf that was true you wouln’t see such wildly different P/E ratios. Current profit isn’t irrelevant, but it doesn't tell you much especially if the company just lost money.