3min chapter

Limited Supply cover image

S3 Ep10: Grow LA / Deodorant For Your Knees / Licensing Family Guy For $10 million

Limited Supply

CHAPTER

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.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode