1J.·

In the past year, the P/E ratio of the semiconductor industry has been twice the average P/E of the last 3 years. The fundamentals of major companies like $NVDA (-0,68 %) are very solid, but I don't think they justify current prices. #semiconductor

3 Kommentare

Das Portfoliopferd@Portfoliopferd

1J.

Problem of P/E Ratios is, that they do not consider potential future developments.

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Joris@JorisInvests

1J.

P/E is how many times the current investor wants to pay the current earnings, but the current investor is valuing the future earnings of the company when they calculate what company is worth (so I may hope). So if something changed for a company and future earnings will be higher than current earnings, P/E will be higher, but does not necessarily mean it is overvalued. Always do your own analysis of what a company is woth according to you, with your estimates of the numbers, looking only at P/E is where I look when I'm lazy (or when I think nothing has changed in company, and then still I only buy after my own cakculations as it is only the current multiple of the market and they tend to be way of 😅)

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