Many stable growth tech companies had PE’s in the teens pre-covid (ex, Apple). Are we to assume the new PE’s in the 20’s and 30’s are the new norm due to excess money in the economy or is there another fundamental difference driving these up? Earnings growth itself doesn’t seem to enough to justify it.
Im not here to debate whether PE should even be a metric to base an investment decision on. Just whether the higher PE’s should be expected to stay.
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