I'm trying to understand P/E-Ratios.
Lets say you buy a coffee shop:
Price: $130,000
Profits per year: $10,000
P/E: $130,000 / $10,000 = 13
So it would take 13 years to break even, if the profits stay the same the whole time.
Palantir PE-Ratio: 520.47
Nvidia PE-Ratio: 70.64…
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