S3 E10: Grow LA / Deodorant For Your Knees / Licensing Family Guy For $10 million
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What Is a P Ratio?
A P ratio is basically like for every dollar earnings you have, what is the valuation of that business? For instance, Facebook makes so much money. Apple usually hovers around 10 to 15 to. Yeah, Facebook is at 20 and Apple's at 25. If you're a company that's not growing, you have a really low P ratio because everyone's like all of your profit is sort of already baked in. But if you're like a young Tesla, you're growing so quickly. Your earnings are going like this. You're going to justify those earnings. You have a high P ratio.
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