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We Have Lost All Sense of Decorum

The Compound and Friends

CHAPTER

How to Calculate the PE Ratio

A study by Golden Sax concluded that while you can calculate an average for the PE, there's actually very little statistical evidence to suggest that the PE ratio itself is actually mean reverting. It doesn't behave based on rules that govern like atomic structure in the universe. These are not as if you're buying a 7-Eleven. And yeah, guess what? If you pay 20 times, that will have a much, a direct impact on how much you earn versus if you pay seven times. That's not what this is. Can you buy Nvidia at 40 times sales as long as as you hit enter, you scream yellow? Is that the way to do it? I think you probably

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