Quote:
Originally Posted by legion
And what generally eventually happens to companies that have a P/E that high?
|
Well it's an indication of expectation.
the higher the number vs others in similar market, the higher the expectation that this company is going to see much higher future earnings.
If you ask me, if it goes to high, it means the expectation is harder and harder to be met. At which time the bubble will burst when it fails to meet that expectation.