shared a media post in group #The Most Important Thing
Big tech valuations. Are they cheap? Here is what the PE looks like if earnings revert back to prepandemic
looking at TTM EPS prior to covid lockdowns and helicopter money, assuming earnings compression come into effect
msft at current share price of $225 would have 37.5 PE with EPS of $6 per share
googl at current share price of $97 would have 38.8 PE with EPS of $2.5 per share
aapl at current share price of $139 would have 43.4 PE with EPS of $3.2 per share
meta at current share price of $128.5 would have a 17.6 PE with EPS of $7.3 per share
people tunnel vision on PE and stock price, often forgetting the second part of the equation which is the E is for Earnings
