4 ms·

Alphabet trades at a P/E of 27, hardly delusional.

• bryanlarsen 3y ago
  During times of low interest rates, 27 is a reasonable P/E. When interest rates are high, it isn't. A P/E of 25 is a rate of return of 1/25 or 4%. TBills return 5% and are a lot less risky.
  • khuey 3y ago
    The S&P 500 as a whole is trading at a P/E of 24. If there are any delusions about equity valuations they're not specific to Google.
  • reducesuffering 3y ago
    When inflation is 5%, stocks are long term immune due to their price being denominated in the inflating currency. T bills will still return 5% but stocks will 4% return + 5% inflation for 9%