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Investment blog

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Comments

  • #32
    27cyrix
    Registered Users, Registered Users 2 Posts: 133 ✭✭27cyrix


    Buy then price goes down :)


  • #33
    Sabre Man
    Registered Users, Registered Users 2 Posts: 2,029 ✭✭✭Sabre Man


    27cyrix wrote: »
    Buy then price goes down :)

    Indeed, or sell and it goes up, as I mention in my latest blog post after selling my NFLX shares.

    What do you guys consider too high a P/E ratio?


  • #34
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,521 CMod ✭✭✭✭Nody


    Sabre Man wrote: »
    What do you guys consider too high a P/E ratio?
    How long is a piece of string? The answer is the same to your question which is there is no fixed ratio as it's all down to industry type, quality of the company, historical performance and expected future performance. You can have a P/E ratio of 1 and be to expensive or 20 and be considered cheap and if you're making investments based on P/E only you need to go back to the drawing board asap and read up on investments properly.


  • #35
    Sabre Man
    Registered Users, Registered Users 2 Posts: 2,029 ✭✭✭Sabre Man


    Nody wrote: »
    How long is a piece of string? The answer is the same to your question which is there is no fixed ratio as it's all down to industry type, quality of the company, historical performance and expected future performance. You can have a P/E ratio of 1 and be to expensive or 20 and be considered cheap and if you're making investments based on P/E only you need to go back to the drawing board asap and read up on investments properly.

    Sure, but when you have companies like Amazon with a P/E close to 1000, isn't that bubble territory?


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