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frightful_hobgoblin@lemmy.ml ⁨3⁩ ⁨weeks⁩ ago

• flamingo_pinyata@sopuli.xyz ⁨3⁩ ⁨weeks⁩ ago

  10x is considered normal for big corpos.
  For growing companies and startups with (perceived) bright future it can go up to 40x, but only for a short time during initial growth stage.

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• PostProcess@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  Nvidia trades at x22

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• TropicalDingdong@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  10x

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• marcos@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

  Something bellow 4.

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  • garbage_world@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

    4 P/E would be insane. Please show me a health company in any time in modern history with the P/E ratio that low.

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    • marcos@lemmy.world ⁨3⁩ ⁨weeks⁩ ago

      Everybody here is talking about P/S, not P/E.

      SpaceX P/E is negative.

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• humanspiral@lemmy.ca ⁨3⁩ ⁨weeks⁩ ago

  It’s not a useful metric because some companies have high margins (perfume, advertising, software) and some have low margins (grocery stores, space launches), and mandatory huge capital/cash reinvestment (AI, space launches). The reason to use a multiple to revenue is because of unprofitability. But all stock price is a function of profit and expected profit growth rate… usually.

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