Happy hump day!! It appears the bulls are finally back!
Or are they? Could the bears storm back?
🟥 or 🟩?
Question:
At what PE is a stock too expensive for you? Share along with your guess for today’s zap bonus
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Happy hump day!! It appears the bulls are finally back!
Or are they? Could the bears storm back?
🟥 or 🟩?
At what PE is a stock too expensive for you? Share along with your guess for today’s zap bonus
Bulls win (🟩)
PE I deem expensive is anything over 20 to 25. Especially if the stock is not paying a dividend!
bitcoin bout to crack 70 again too
👀
🟩
Any P/E above 25x to 30x is expensive.
🟩
Above 30x forward P/E, every single metric needs to be flawless. Zero room for execution error at that valuation.
🟩
Above 35 should be considered expensive.
🟩
Usually above 30, unless the growth justifies it.
🟩
Any P/E above 20x to 25x is too expensive.
that's almost everything these days?
So you just don't buy, to fall prey to the hype
🟩
There’s no universal cutoff. A P/E of 30 could be expensive for a slow-growing utility but reasonable for a company growing earnings 25–30% annually. However, above 30x is expensive.
🟩
Capital-light tech software firms command naturally higher P/E multiples (often 30+) due to high margins, whereas highly regulated utilities or capital-intensive banks trade at much lower historical averages (10–15).
🟩 A stock is too expensive if its P/E ratio is significantly higher than its earnings growth rate (a PEG ratio greater than 1.5 or 2.0).
🟩
Is there a P/E high enough to stop momentum traders? Ask Nvidia or Telsa shareholders over the last 5 years.
🟩
Single digits can be just as dangerous as triple digits. A 5 PE usually means the market expects earnings to collapse.
🟩 I care less about the absolute number and more about the historical range is it trading at a 50% premium to its own 5 year average?
🟩 P/E alone is misleading. I care way more about Free Cash Flow yield and return on invested capital (ROIC).
🟩
If the company isn't profitable yet, P/E is N/A anyway. Price-to-Sales and Gross Margin tell the real story there
🟩 A company with heavy debt might look cheap on a P/E basis while carrying significant financial risk compared to a cash-rich competitor.
Bitcoin payments coming to open table soon? 👀
LUNR getting that government put
Marty’s company may dilute soon!