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Re: yeag1717 post# 1589

Friday, 03/28/2014 12:50:47 PM

Friday, March 28, 2014 12:50:47 PM

Post# of 61819
I think that is a bit overoptimistic. what you have to understand about P/E is that its correlation to stock price varies wildly form company to company. Some people might have a huge P/E yet have a very high value, because people think the stock has a lot of potential future. where as a giant tech company with billions in revs may have a small P/E because people believe future growth will happen very slowly.

So basically, I believe that if our EPS went up to .21 the P/E would almost certainly come down. Booming growth slows down to steady growth, which in turn slows down to gradual growth, and P/E goes down with it.

This has been my understanding anyways.
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