3 ms·
Doesn't a multiple of 5 basically mean the market is seriously worried that the business will shrink / go bankrupt?
by im3w1l 2y ago
Doesn't a multiple of 5 basically mean the market is seriously worried that the business will shrink / go bankrupt?
- FredPret 2y agoPerhaps, but investors are neither fully informed nor fully rational. People get overexcited about new trends, then everybody jumps on the bandwagon, and good but boring stocks are ignored. Doesn't mean these are weak businesses though.