For a company like Tesla, with a P/E ratio of 1.29K, does this mean that for every 1 dollar gain, people are willing to pay $1,290 dollars per stock?
Also, what is considered a "high" or "low" P/E ratio? All the examples online just say high or low but no real numbers.
Apparently on past examples/posts, this means that for every $1,290 worth of stock I buy, I get in return $1 of earnings. This doesn't make sense as my gains on this company is well over $1 per stock that I own.
Submitted December 26, 2020 at 01:21AM by GetRichWhen https://ift.tt/38D5qdA
