my theory is the following.
Price to Earnings ratio is expressed as a multiplier (15, 20, 30x), which when multiplied by the earnings per share (EPS), provides us with intrinsic value.
P/E ratios are derived from the assumption of future earnings potential, which we're seeing dwindle at the moment due a lack of announcements and by association, shareholder confidence.
as confidence declines, expectations decline, lower P/E ratios are assigned and thus a lower intrinsic value results.
it may very well be that business is booming and we're all fearful for nothing, only time will tell.
my theory is the following. Price to Earnings ratio is expressed...
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