Its just a rule of thumb and conservative. Most competitors are still in ramp up stage and pre-reveune and earnings so not applicable.. Pilbara Minerals in the lithium space are running between 9-10 PE. However the wild fluctuations of the Lithium prices has impacted their earnings and will change accordingly as financials are released.
Tesla are running at a 41 PE which would be nice in a few years...
Its just a rule of thumb and conservative. Most competitors are...
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