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A PE of 60 is very high. A very rough rule is that the PEG (PE to Growth, where growth is earnings growth in percent) should be about 1.0. So a PE of 60 means
by gruntled 11y ago
A PE of 60 is very high. A very rough rule is that the PEG (PE to Growth, where growth is earnings growth in percent) should be about 1.0.
So a PE of 60 means the market is expecting very approximately 60% year on year growth.
- technotony 11y agoThat's probably what facebook is growing revenues, so maybe it's rational. this (a little out dated) chart shows that: https://marketrealist.imgix.net/uploads/2014/05/Companies-Ad-Revenue-Growth-Rates.png?w=660&fit=max&auto=format https://marketrealist.imgix.net/uploads/2014/05/Companies-Ad...