Comment on Amazon Is Pausing Hiring for Corporate WorkforceparentComments−MuffinFlavored3yA company with a 20x PE implies a 5% yield this year.Isn't this kind of a useless stat?https://www.slickcharts.com/sp500/returnshttps://www.multpl.com/s-p-500-pe-ratiothe market typically doesn't follow this "this P/E must yield this much return" rule from what I can tell. We've had many many many 8-10%+ ROI years despite whatever the "this P/E implies this much yield/return" rule dictates.
Comments
Isn't this kind of a useless stat?
https://www.slickcharts.com/sp500/returns
https://www.multpl.com/s-p-500-pe-ratio
the market typically doesn't follow this "this P/E must yield this much return" rule from what I can tell. We've had many many many 8-10%+ ROI years despite whatever the "this P/E implies this much yield/return" rule dictates.