Mike Schwartz wrote:
> Just to help clarify those P/E ratios, for those of us who might not be
> accustomed to the British (or, Euro) custom of using a comma as the
> decimal point:
> 
>> Google actually is trading at [...] (38,45 P/E, compare to Amazon at
>> 53,86
> P/E)[...]
> 
> Those numbers would be represented as "38.45" and "53.86" by
> some folks with slightly different customs...  like, US customs.
Actually there are 2 P/E ratios (P/E and Fully diluted P/E, often shown as F P/E), I was indicating both (38 and 45 vs 53 and 86).
> 
> By the way: someone [else] had said:
> 
>> As soon as enough money goes into something
>> it literally runs on its own momentum( case in point: Google[1] ).
> 
> I think a better "case in point" would be [about a decade ago], Yahoo.
> I thought their stock was overpriced with a P/E in the high triple digits.
> I finally did sell short around the end of 1999 (right before "Y2K")
>   when it (the P/E) was over 1000.
> At today's prices, I think yahoo (like google) has a P/E that, while it
> might be kinda high, is sorta reasonable.
> Both Google and Yahoo do have some mighty smart people.
> like their founders.
> 
A P/E over 80 for a lot of companies in one or a few industries is generally a strong
sign of a bubble forming or in place.
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