Is it theoretically possible for p/e to move with inflation over time.


Just a slight bull theory. As numbers like revenues expand over time due to inflation. Should p/e’s also become larger?

Think of it like this. Assuming there are 2 companies with the same margins. If there was a company worth 40bil that made 4 bill rev with 10% growth. And a company worth 1tril that made a 100bil rev with 10% growth. It’s obvious which is the better buy

That’s all I got. Thoughts?


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