Re:Tech bubbles are bursting all over the place
by epgui on Friday May 13, 2022 @12:31PM
(#31369654)
It completely depends on the expected rate of growth of the company. Even 100x can be fair for a very high growth company. For companies that don't have such great prospects, <5 may even be appropriate.
"PE should be close to X or between A and B" was always an extremely rough and imprecise heuristic, and it is no substitute for a real analysis with a DCF model.
"PE should be close to X or between A and B" was always an extremely rough and imprecise heuristic, and it is no substitute for a real analysis with a DCF model.