Commemorative
Traded ValueWhat kind of individual stocks make you feel secure holding them?
EPS growth rate above 10%, stable business, P/E less than 20x
EPS growth rate above 20%, relatively certain business, P/E less than 30x
Similar examples, even if the market falls, you won't be afraid. Back to the simplest, investing in a restaurant, what do you look at? The chef? Sales? Only look at profits. Then give a multiple (P/E) based on the profit figure. If you're losing money, well sorry, your restaurant can only be sold as equipment😂
Making money is the bottom line. In different spaces, with different participants, naturally different multiples (P/E) emerge. It's not about how good your business is, but whether those who want to buy your business are willing (so what if they have money).
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