Re:Facebook trades under $30, down 7%+
by marcusf on Tuesday May 29, 2012 @03:05PM
(#4039140)
Just an amateur, so speculation abound. But presumably, on the basis that other investors that you hope will value it higher will use the P/E ratio as a metric as well, and that it gives a comparative metric between "similar" companies. E.g. it's an often used metric just because it's an often used metric.
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