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A comment on Tech valuations are back to pre-AI boom levels. Parent comment
> The chart below compares the forward P/E ratios for the S&P 500 and the S&P 500 Information Technology sector.
> Tech valuations have compressed from 40x to 20x, and we are back at levels last seen before the AI boom began
Forward PE is the ratio of stock price to anticipated earnings.
If it's higher, then investors are predicting future growth in a company.
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> The chart below compares the forward P/E ratios for the S&P 500 and the S&P 500 Information Technology sector.
> Tech valuations have compressed from 40x to 20x, and we are back at levels last seen before the AI boom began
Forward PE is the ratio of stock price to anticipated earnings.
If it's higher, then investors are predicting future growth in a company.