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polarbear666

4,182 Posts.

2291

23/07/20

14:06

Post #: 46042874
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Originally posted by Christos12: ↑

I assume you are referring to when the company is profitable and in maturity?

Company PE's are effected by their capital structure, accounting policies and their growth rate.

APT has a conservative accounting policy (minimising Earnings, low depreciation), minimalist capital structure (no assets other than book, offset by liabilities) and will still be fast growing.

The PE should be around the 100x mark for an extended period. It should fall as the growth rate falls. For PE, a rough guide is PE=12 + CAGR.

I don't like PE because it so subjective to the above mentioned plus the interest rate at the time and dividends etc. Big 4 Banks, for example, are more similar to bonds so PE isn't relevant but yield is. 2 companies can't really be compared on PE. IE. APT can't be compared to any other company. PE also doesn't work at all for unprofitable and newly profitable companies.

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pe value zombies need to read this 4 times...
https://www.livewiremarkets.com/wires/value-investing-more-trash-than-treasure

APT Price at posting: $72.43 Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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