Albemarle Corp ⛏ 🔋 ($ALB) - Share Chat

[NeilB]

@Cameron posted this a while ago. Does a much better job than I could to succinctly explaining P/E ratios.

PE ratios

While it can’t paint a complete picture PE is perhaps the simplest way to measure optimism / gauge how expensive something is. PE tells you how much you have to pay for a year’s earnings. If there are 2 machines that make a £1 coin every year A is very good, it’s very reliable and in future it might make them even faster B is a bit dodgy, it’s getting slower and there’s a chance it might break entirely People might be willing to spend £100 on A but only £10 on B because it’s riskier. A has …