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Teehee (lemmy.nz)
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[-] UnderpantsWeevil@lemmy.world 9 points 1 day ago

Tesla at one point had a P/E ratio around 300

They're currently at 433.

But the S&P 500 average is around 23-26. Historically, in the 16-20 ballpark.

Reddit is fairly valued, even if it's administered by a bunch of assholes.

[-] 13igtyme@startrek.website 7 points 1 day ago* (last edited 1 day ago)

That's what I mean by worse.

A decade, and more, ago it was taught that a company with a P/E under 15, with a few other fundamentals checked, was a good investment for a growth stage company. When that P/E went above 40 it was time to evaluate if selling is needed because the stock is over valued and due for a correction.

None of that matters anymore.

[-] UnderpantsWeevil@lemmy.world 4 points 1 day ago

A decade, and more, ago it was taught that a company with a P/E under 15, with a few other fundamentals checked, was a good investment for a growth stage company.

What? No. It was a good investment for a stable blue chip company.

Growth stocks are always going to be on the high end. 30-50 p/e is very normal, especially with a bullish sentiment behind a growing company. 100 p/e wasn't outrageous if a company was growing rapidly.

What's surreal about firms like Tesla is that they're already functionally blue chip. They've done their growth phase and largely saturated their markets. But they value as though people anticipate Tesla to eclipse Toyota in the next twenty years, absent any evidence to that effect.

None of that matters anymore.

There are a few outlier firms outperforming the pack - the MAG7, specifically - that are trying to claim growth stock status on the grounds that tech infrastructure consumption is preparing to increase rapidly.

Whether that pans out remains to be seen.

this post was submitted on 30 Oct 2026
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