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Kurra Bewarse
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Post Number: 1743
Registered: 01-2007

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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

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