3 ms·
Some people care about PE. Some people don’t. It’s just one metric that represents past performance. If it’s high, the market believes the stock price will go u
by simpsond 2y ago
Some people care about PE. Some people don’t. It’s just one metric that represents past performance. If it’s high, the market believes the stock price will go up.
- rib3ye 2y agoAnd to piggyback on this, these people may have between 0 and 100% understand of the core business. For me personally, it’s a turn off.
- rcxdude 2y agoNo, P/E being high means the stock market thinks the company's income will grow by a lot in the future. The price may go up or down as those expectations for the future change (a high P/E stock can announce record profits and have the stock go down, if in fact the stock was being priced on the expectation that the profits would be higher than announced).