▲ | 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. | ||||||||
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