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| PE ratios on companies that reinvest all available cash for growth isn't a very good metric to use for valuation. I agree TSLA has an insane valuation, but PE ratios are usually a lousy metric that are based on GAAP earnings and all sorts of things come into play there that can miss the underlying economic reality of what is going on. As an example, add about half of Amazon's R&D and CAPEX back into their operating earnings and all of a sudden it's not quite as insanely valued as it first appears. Not saying its reasonably valued, just giving you an example of how "PE Ratio" can be missing the bigger picture. Hope that made some "cents"... | |
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Appears I’ll be going down with my Tesla ship...
