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> ratios dont account for inflation For future inflation. It was relatively low between 2010 and 2020 and has been reducing at a fairly fast pace recently. It’
by ffgjgf1 2y ago
> ratios dont account for inflation
For future inflation. It was relatively low between 2010 and 2020 and has been reducing at a fairly fast pace recently. It’s not obvious it won’t go back to the baseline.
- s1artibartfast 2y agoThey don't account for any inflation at all. I am just explaining how inflation influences p/e interpretation. Everyone has their own model of what they think inflation will be in the future, which they use to judge PE and roi.