PE
PARSLEY ENERGY INC
stock NYSE

looooool, and this is why one hedges when a stock goes to 600 PE

I said it's down by 4.45% off it's high (which has nothing to do with it's historical PE), which it is. You moron.

The run up stopped making sense a long time ago. Tesla would report a "I was in the pool" level of shrinkage in sales quarter after quarter and would be rewarded with a PE ratio that doesn't even make sense if they were growing 25% a year. NVidia had a market cap bigger than most countries.
So just as the run-up didn't make any sense, The rundown doesn't also have to make any sense. Things are just on their way back to something rational. If you're invested in companies with solid portfolios of products and pe ratios that actually makes sense, you'll be fine. They'll continue to make money, pay their dividends, and their valuations can't go down that much because all the value investors would scoop them up. If you're all in on meme stocks that go up 5% because the CEO tweets some rubbish, you'll probably keep losing money.

Look at the competition.. you have Kalyan, Titan, PN Gadgil… each of them doing exceptionally well. If you are 5/6 th player in the industry it’s highly unlikely that the market will expand your PE. For example look at the Wire industry.. Polycab and KEI gets the premium valuations whereas others do not.

That’s a totally fair point — tech *is* expensive right now, and the market has clearly priced in a lot of AI-driven growth. High PE usually implies lower forward returns **if** earnings don’t grow fast enough to justify the valuation.
What I’m trying to do with this structure isn’t to deny valuation risk, but rather to:
* focus on sectors where long-term earnings growth is *structural* (AI, semiconductors, cloud, automation)
* avoid single-stock picking risk
* diversify across the full stack (hardware + data + software)
* accept short-term volatility in exchange for long-run compounding
I completely agree that mean reversion can hit any segment — even the winners. But historically there’s a big difference between:
* **speculative tech with no earnings**, and
* **mega-cap AI/semiconductor companies with real cash flow, dominant market share and multi-year demand visibility**.
I’m not assuming “this time is different” — I’m assuming cycles will happen, drawdowns will happen, and valuations will compress at some point. The idea is simply that the *long-term trend* in AI + semiconductor demand is strong enough for me to accept those cycles.
Appreciate the reminder though — valuation discipline is important, even in fast-growing sectors.

Shoulda sold out when the [deviation from the Shiller PE trend broke 17](https://www.reddit.com/user/Think_Reporter_8179/comments/1ohplbp/greed_just_broke_17_if_youre_laddering_out_its/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)

Just want to let you know that the tech field is very expensive. Youll be paying 30 plus price to earnings on these companies. High PE over the long term is correlated with low returns. This time is different are the most dangerous words in investing. Mean reversion will happen. That's not bearish on AI but it's simply how market cycles work. Everything will be fine until it isn't.

Sick. Use your 50% sideline cash to buy things for more money in the future even though things might eventually correct. Very very smart.
You're in the value investing subreddit and sitting on the sidelines now? Meta is at a PE of almost in the teens... And you sit on the sidelines? You do you.

Lol bbwi (bath and body works) down 30% today, forward PE of 3 now.

Google's PE Radio is mediocre, for the stock and the industry
the Forward PE is mediocre for goog vs the Interactive Media Industry
and he PE Ratio without NRI is mediocre for the stock and the industry as well
The Shiller PE is terrible for the industry and mediocre for the stocvk
///////
Google's PE ratio is 67% worse than the other 275 corporations in the Interactive Media Industry
and you'd look at the Trailing 12 months
////////
Price to Free Cash Flow - terrible for industry and the stock
Price to Operating Flow - mediocre for the industry - terrible for the stock
//////////
Revenues
87% Google Services
12% Google Cloud
0.5% Other Bets
Google Services 2022 $253 Billion
Google Services 2023 $272 Billion
Google Services 2024 $304 Billion
Google Cloud 2022 $26 Billion
Google Cloud 2023 $33 Billion
Google Cloud 2024 $43 Billion

SPY PE was literally 30-32 right before the bubble popped.
Also, infinity PE is literally impossible.

We aren't in a recession...
The reason that happens in a recession is BECAUSE EARNINGS DROP FASTER THAN SHARE PRICE...
At the end of 2007, about to head into a major recession, WMT had a PE ratio of 6. Not 60, SIX.
Do some research lol

I’ll confess, after all these years of studying the stock market, I have no idea what the hell is going on right now.
Company has record earnings, no debt. I don’t buy the PE bullshit.
Have bought 250 shares since it started dropping.

eh that 400 PE kinda sounds like they might as well be man.

So if the company had just awarded the cash as compensation their opex would be huge right?
What is their PE with this taken into account?

Because it's priced in. $NVDA was at almost $200 on about $6 in annualized EPS and that is before dilution.
200 / 6 = a PE of 33x which is... ok? But not a lot of room up if you assume there are about to be headwinds. And given it's market cap there is so much room down.
Also, the memory costs are going to absolutely hammer the data center expense.

If you think a company projecting 5% sales growth deserves a PE valuation of over 40, go ahead and load up now. I will keep my puts.
Walmart may be doing better than Target, but it is valued right now as if it is a high tech growth company.

yeah, but paypal has been growing consistently. if this keeps happening do you really think people will let the PE fall to 5 while it is growing?
that's insane.
now if it isnt growing (rev growth down to mid single digits) - then totally .

If you have no idea just buy an index sp500 fund like SPYM and only check on it like once a year and never sell.
To answer your question, one simple thing to do is look for the MAG7 stock that has the lowest PE and buy some of that. It's not guaranteed to work, but historically it has done pretty well. Earlier this year it was GOOG, and now it's META after the drop.

MU. forward PE 11.39 ?