Not quite; If you are assessing whether to buy or sell something P to Free cash flow is the important indicator, not PE. To prove this, look at the PE of APA, DBI and TCL, all are atronimical, but the P to free cash flow is low, because depreciation runs much higher than sustaining cap ex.
I'm happy to bet you notwithstanding the high P/E of DBI (21 X), it will outperform the market over the next 6 months, even though P/E is 21 X: because the P/FCF is 13 X with 5% expected growth in FCF = 12.5 % pa total return
If you want to use P/E to assess whether something is cheap, that's fine and your choice. It's not mine.
MIN Price at posting:
$20.18 Sentiment: Buy Disclosure: Held
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