Re:GameStop Is Rage Against the Financial Machine
by thekyle on Wednesday January 27, 2021 @09:09PM
(#25937220)
There are plenty of value ETFs for those who want stocks with low P/Es. Historically value stocks have even outperformed growth stocks.
Also, the long term average P/E ratio is 15. Stocks haven't really had P/Es less than 5 since the Great Depression.
Re:GameStop Is Rage Against the Financial Machine
by cwkoss on Wednesday January 27, 2021 @11:46PM
(#25938306)
Thanks, I've never looked into ETFs with this thesis before. Could be an attractive investment.
Found this interesting list of average S&P500 P/E over the years https://www.multpl.com/s-p-500-pe-ratio/table/by-year
Average P/E is 15.79, higher than I thought it was.
Re:GameStop Is Rage Against the Financial Machine
by robocat on Wednesday January 27, 2021 @10:46PM
(#25937895)
> “reasonable" P/E multiples of ~5 or less.
So you are saying more than 10% yield should be normal? (Assuming normal payout ratio is 50% - highly variable).
Re:GameStop Is Rage Against the Financial Machine
by creddit on Wednesday January 27, 2021 @09:02PM
(#25937163)
P/E of 5 is really small. Historic P/E ratios are multiples of that.
Re:GameStop Is Rage Against the Financial Machine
by erichocean on Wednesday January 27, 2021 @08:24PM
(#25936873)
Siri, what is Amazon's P/E ratio?
When a business has a P/E multiple of >100+, a significant portion of the investment is speculative rather than a rational projection assets and future earnings.
It's really hard to make a rational value fundamentals argument for why anyone is willing to invest in TSLA, with its current price putting its P/E of 1700.