5 Comments

Using a PE of 30 for a automobile company.....while others trade in the single digits....this is a formula for success

What is growth slows to 20% or....lower.....

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If growth slows, the multiple will decline and the shares will not rise as much as I have modeled. The PE of a growth company should equal its growth rate if the growth rate is sustainable for an extended period of time. https://www.dothefinancial.info/rate-return/the-priceearnings-ratio-and-growth-opportunities.html

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what if your formulas dont apply because Tesla is the ultimate bubble stock?

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unless its a bubble stock which Tesla is

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They used to say : don’t bet against the Fed .

Ditto , don’t bet against the Musk

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