Gotcha
Kurra Bewarse Username: Gotcha
Post Number: 1743 Registered: 01-2007
Rating: N/A Votes: 0 | Posted on Wednesday, March 31, 2021 - 9:03 am: | |
Gary Black @garyblack00 · 9m It’s math. Use the formula: P/E = 1 / (r - g), where r is cost of equity (increases with 10-yr yields) and g is growth. For a growth stock with a future P/E of 50x, the denominator (r-g) is 2%. If (r-g) goes to 2.5% because 10-yr yields rise, the P/E drops to 40x (-25%). $tsla |