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by marcosdumay 32 days ago
Hum... I've been out of stocks for a long while...

Is a price to sales ratio of 100 anything near normal nowadays?

EDIT: Wow, that was easy to find out. Turns out that didn't explode with the everything bubble, and almost no industry in the S&P 500 has an average above 5, the highest being a bit over 8.
1 comments
branko_d 32 days ago
No.

Palantir, possibly the most overvalued company on the stock marker, has P/S 63 and P/E 144.

Nvidia has P/S 21 and P/E 33.

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marsten 32 days ago
Second-highest P/E is Tesla, currently at 97.

Apart from Palantir and Tesla, the other big companies are trading at what would historically be considered reasonable P/Es given their growth rates and profitability.

What's really changed in the last 20-30 years is the incredible profit generated by the tech industry, and the defensive moats the biggest companies have built.

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riffraff 32 days ago
Tesla has a P/E of 383, I think?

Of course, it shares the same reality distortion field.

https://finance.yahoo.com/quote/TSLA/

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marcosdumay 31 days ago
And a P/S of 15, according to that link.

This 100 is really an outlier.

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