you are viewing a single comment's thread.
>>>This is a tech stock, not a bank, it deserves a high PE<<<Not necessarily true. P/Es depend on three things: (1) earnings growth, but near-term and secular; (2) earnings quality; (3) earnings predictability.There are companies that grow a fast rate near-term, but those earnings are highly unpredictable. This is typical of cyclical stocks.Best of example of fast growing stocks but with low P/Es:Housing stocks. Growth rates of 15-plus percent well over the past 15 years. Forward P/Es...6-9x.Ooh-rah!IJH