TSLA
PLTR
HIMS
SPCX
SOFI
META
BTCSteady earners: value them like bonds
Use the forward P/E and similar ratios, and compare them with the company’s own history, not its peers
10%
5%
2.5%
P/E 10P/E 20P/E 40
| P/E 10 | 10% |
| P/E 20 | 5% |
| P/E 40 | 2.5% |
Turn the P/E upside down and you get the yield, as with a bond: 1 ÷ 20 = 5%. Count stock-based pay as a cost
Why it matters
Peers are a poor yardstick: a whole industry can be cheap or dear at once.
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