30 days ago • Posted by William Ramstein

Tech valuations now vs dot com era graphic

High price-to-earnings (P/E ratio) means investors are willing to pay a premium to hold a specific stock. It could mean the stock is very promising with future cashflows and earnings growth justifying the high share price. It could also mean that a stock is overvalued, overbought, and hence a riskier investment. How do you assess this comparison with the dot come era (source: FT):