Comment by rybosworld
4 days ago
How valuable is this metric considering that the biggest companies now draw a significant % of revenue from outside the U.S.?
I'm sure there are other factors that make this metric not great for comparisons with other time periods, e.g.:
- rates
- accounting differences
I estimate you’re talking 25% from overseas.
If that bothers you, just multiply valuations by .75
Doesn’t make much difference even without doing the same adjust for previous eras.
Buffett indicator survives this argument. He’s a smart guy.