> Even growth stocks have about 5x the price to revenue.
A PE of 5 is not a growth stock - that’s the kind of PE you’d see on a barely surviving mid-cap in decline…. The combined PE of the S&P500 is in the low to mid 30s these days!
PE is not the same as PS (price to sales or revenue). Startups and growth companies are often valued by PS since they have revenue growth, but are often not yet turning a profit (making their PE < 0).
