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Does stock valuation actually matter? Ft. Brian Feroldi

Australian Investors Podcast

00:00

How to Identify a Business in the Wild?

When a company is growing very rapidly, the price to earnings ratio is often a useless metrix. Investors should look further up the income statement to get a better idea of a value. The mature a business gets, as it continues to grow and mature, that's when the company switches from focusing on growth to focusing on profitability. And when a company is fully optimized for profits, bingo! That's when the price to Earnings ratio starts to work.

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