alt Hacker NewsOf course not. If the P/E was 1, every single public company would be immediately gobbled up by Private Equity firms, who would make their money back after a few years of operation and the rest would be pure profit.
Of course not. If the P/E was 1, every single public company would be immediately gobbled up by Private Equity firms, who would make their money back after a few years of operation and the rest would be pure profit.
Of course they would! If the P/E of a company is 1.1 it is overvalued by definition so why would anyone buy an over valued company?
So you have to be a complete idiot to but stock in a company with a P/E of 500!