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JKCalhoun 4 days ago

Does P/E ratio (example you gave: 35) actually equate to years of profitability (also example you gave: 35 years)?

prepend 4 days ago | parent [-]

It means you’d need 35 years of earnings to equal the price paid today.

So, yeah it’s sort of like using that logic. Not exact as a dollar 35 years from now isn’t now, but you get the gist.

JKCalhoun 4 days ago | parent [-]

Thanks!