The P/E Ratio: A User's Manual
Actively Speaking Podcast
How Do You Discount Future Cash Flows?
The dollar today is actually worth more than a dollar and one cent a year from now. So you have to discount money in the future back by some discount rate. When interest rates fall, it tends to push PE ratios up. But don't think of it as just an interest rate. It's what's my expected return on equity investments in general.
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