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That is actually quite good. I am surprised.

• voisin 2y ago
  A P/E on its own is not good or bad. If the company’s earnings are in decline you would expect a low P/E, and if they were growing aggressively then you would expect a high P/E. It is only when there is a mismatch when the ratio becomes interesting. I am not saying it isn’t interesting in this case but the comment you are replying to does not tell any information that would lead to the conclusion it is “quite good.”
  • bhouston 2y ago
    Yeah if there is no growth but a lot of earnings the stock should probably start to pay dividends no? Otherwise what is it doing with all that cash it is generating?
    • voisin 2y ago
      100%. Doesn’t even have to be zero growth - just growth less than investors want to see, as implied in the P/E ratio (since investors control the P).