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Why is market cap the most important metric? It does not exist in a void. Market cap + P/E or forward P/E, P/B, P/S, etc. are all metrics of high import. Marke
by RayVR 2y ago
Why is market cap the most important metric? It does not exist in a void. Market cap + P/E or forward P/E, P/B, P/S, etc. are all metrics of high import.
Market cap is one piece of a complicated picture. On its own, you don't know too much.
- wbl 2y agoAnd how much money do you make from trading large cap US equities?
- aurareturn 2y agoWhy is market cap the most important metric? It does not exist in a void. Market cap + P/E or forward P/E, P/B, P/S, etc. are all metrics of high import. I thought it was obvious that I implied market cap increase by percentage. When you're evaluating your ROI on tech stocks, the #1 factor is market cap delta between when you bought the shares and now.