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I understood it. Forward P/E is typically next year's P/E. Investors expect nearly $100B in revenue, but almost no earnings (1/366th). Because the denominator i
by ericglyman 12y ago
I understood it. Forward P/E is typically next year's P/E. Investors expect nearly $100B in revenue, but almost no earnings (1/366th). Because the denominator is expected to be SO small (against such large earnings), the forward P/E ratio will also be ridiculous and not very meaningful.
No denying that many Amazon investors are bullish, but this is not the metric to prove that point. Other relevant drivers at play.