Re:Since becoming Meta, Facebook’s parent company has lost U...
by JumpCrisscross on Friday October 28, 2022 @11:54PM
(#33380814)
> stable company typically has a P/E ratio of 20
This is a 5% earnings yield. That's a whopping 99 basis points ahead of the 1-year rate and 103 north of the 6-month [1]. One can adjust for growth [2]. But a neutral 20x multiple is not a fact of nature.
This is a 5% earnings yield. That's a whopping 99 basis points ahead of the 1-year rate and 103 north of the 6-month [1]. One can adjust for growth [2]. But a neutral 20x multiple is not a fact of nature.
[1] https://home.treasury.gov/resource-center/data-chart-center/...
[2] https://en.wikipedia.org/wiki/PEG_ratio