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Forward PE is a guess. Amazon has shown it can sell a lot of stuff at a loss. Guess what, so can I. Apple has shown it can sell stuff with huge profits. Tha
by YZF 14y ago
Forward PE is a guess. Amazon has shown it can sell a lot of stuff at a loss. Guess what, so can I. Apple has shown it can sell stuff with huge profits. That was the past. In the future- who knows...
- 18pfsmt 14y agoI'm not sure what you are talking about, but the Price:Earnings ratio is not a guess. It is based on past SEC filings. To suggest as much indicates a significant lack of understanding on your part, and I am really not sure what business you have discussing this topic with anybody. Edit: I realize that Forward P/E is different from P/E, but various analysts use various numbers for Forward P/E, so it is not a definitive metric in the first place.
- YZF 14y agoThe comment above spoke about "this fundamental valuation number" regarding FORWARD P/E. Forward P/E is a guess (== varius analysts use various numbes == Almost always wrong sometimes in a major way). That's why I made the comment. I understand perfectly well what P/E is. EDIT: Companies also manipulate E in various ways so even though P/E is supposedly not as fictitious as forward P/E you also have to be careful with that number.