Re:Apple becomes first U.S. company to reach a $2T market cap
by omgwtfbyobbq on Wednesday August 19, 2020 @01:07PM
(#24212801)
One other thing that makes comparison hard is the changes in the tax code. PE ratios in the past were based on certain corporate tax rates, which have been reduced significantly. Something like after tax PE ratio might level the field when comparing PE ratios across time.
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Re:Apple becomes first U.S. company to reach a $2T market cap
by 2arrs2ells on Friday August 21, 2020 @01:30AM
(#24232262)
Earnings are already after tax. That's why EBITDA is EBITDA (earnings before interest, tax, depreciation and amortization).
Re:Apple becomes first U.S. company to reach a $2T market cap
by omgwtfbyobbq on Friday August 21, 2020 @01:11PM
(#24236803)
Thank you! For some reason I thought they were pre-tax.
Edit - It seems like adjusting for whatever the fed funds rate is might provide a more accurate comparison.