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Unsubstantiated guess: insane P/E ratios became the norm and maintaining them is harder when you’re raising salaries.
by okwubodu 4y ago
Unsubstantiated guess: insane P/E ratios became the norm and maintaining them is harder when you’re raising salaries.
- DamnYuppie 4y agoHow do large P/E ratios impact salaries?
- Enginerrrd 4y agoI don't think this would pass much scrutiny, but I suppose you could have a situation where a small number of people that own a large number of shares in a variety of companies could become a monopolistic unified force that could put downward wage pressures on entire industries.
- JumpCrisscross 4y ago> insane P/E ratios became the norm and maintaining them is harder when you’re raising salaries P/E is the inverse of earnings yield. It varies with rates. So 2% -> 1% equity yield means a doubling of P/E. But framed as a yield shift it looks less dramatic (and more familiar).