PE Ratio average between 17 to 20.
Average you wrote? Yes, there are a whole lot of very boring public companies.
Do some research from the past.
1970s; Nifty 50. Avaon and Polaroid; two of my first two puppies were in that group. Huge PE Ratios going right through Nixons 1974 resignation.
Now go light speed ahead to 1976.
Investigate Comprehensive Care CMPH. One of my huge hits.
Made Forbes fastest Growing 100 list many times. Yes, I held it till 1983. Why did it have that high PE Ratio that you just found in your facts verification research?
Because companies are like a beauty contest. If the market average is 17 PE and your company is 17 you are investing for average returns.
If your company is a fast growing company; lets say 100% a year. Your PE can be 100. Next year if the stock stays flat the PE is 50, then 25, then 12.5, then 6.125, then 3. Any reader now knows why my Big Picture is correct. Does anyone think a fast growing company in year 6 of this earnings boom will remain flat.
I answer that with this sentence. What experiences teaches some one that a fast growing company will be 20? I know of zero examples.
I am correct. I have all the history of the stock market backing up my believe that we can trade at a 100 PE Ratio.
I rest my case. 500 to 1000$ on the 10 year horizon and no one will change my opinion. Future results very likely will cause me to up my estimates. The only fact that will stop this is a buy out or merger.
If a merger, I will still own a piece of Leron and will not sell the post merger company shares
