I see a lot of focus on PE here and i get the impression that people don't know what PE is. PE looks back on the past 4 quarters of data and compares it to today's share price. The past 4 quarters is relevant for reasonably stagnant companies as you can assume the future value will be similar. If you want to value a growth company however you should not use this metric.
One of the best ways to illustrate this is to simply link a chart of PE for a high growth company. https://ycharts.com/companies/NVDA/pe_ratio
See the step change every quarter? When a company is growing the previous quarters from a year ago weigh into the PE equation. You don't get to factor these out until the next quarterly report lands which leads to a massive step change as the recent quarter pushes the 1 year past quarter out of the equation.
For high growth companies you're better off looking at forward PE. In this case it's 25x. Or if you want forward PE with growth there's PEG. In this case there's an expected 8% quarterly growth.
I keep seeing posts complaining about the PE of high growth companies but i worry this is simply due to a lack of understanding on valuations. I hope this helps.
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