Comment by JKCalhoun
4 days ago
Does P/E ratio (example you gave: 35) actually equate to years of profitability (also example you gave: 35 years)?
4 days ago
Does P/E ratio (example you gave: 35) actually equate to years of profitability (also example you gave: 35 years)?
It means you’d need 35 years of earnings to equal the price paid today.
So, yeah it’s sort of like using that logic. Not exact as a dollar 35 years from now isn’t now, but you get the gist.
Thanks!