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0 pointsfastball1mo ago0 comments

Of course not. If the P/E was 1, every single public company would be immediately gobbled up by Private Equity firms, who would make their money back after a few years of operation and the rest would be pure profit.

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Noaidi1mo ago

Of course they would! If the P/E of a company is 1.1 it is overvalued by definition so why would anyone buy an over valued company?

So you have to be a complete idiot to but stock in a company with a P/E of 500!

darth_aardvark1mo ago

> Of course they would! If the P/E of a company is 1.1 it is overvalued by definition so why would anyone buy an over valued company?

This is obviously untrue. Would you sell a box that spits out $1 million dollars a year for 1 million dollars?

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