Aaron, these are great names and concepts. I'm sorry I don't have the bandwidth to dive in deeper to each of these today, but this is very much how I think about modern value investing.
Reading your articles has really inspired me to start my own free Substack. I love discussing topics on value investing and really appreciate your work!
> NVDIA’s valuation today sports a trailing PE ratio in excess of 100x — which implies a 1% earnings yield. Now of course, there are people saying that it can grow its earnings by 30% CAGR. However, that would still imply that it would take over 6 years just to catch up with the current 5% yield of a 3-month Treasury bill, or 12 years to catch up to the 10% yield of a stock trading at 10x PE.
Sorry, I'm new to this. How does this calculation work?
Aaron, these are great names and concepts. I'm sorry I don't have the bandwidth to dive in deeper to each of these today, but this is very much how I think about modern value investing.
Reading your articles has really inspired me to start my own free Substack. I love discussing topics on value investing and really appreciate your work!
> NVDIA’s valuation today sports a trailing PE ratio in excess of 100x — which implies a 1% earnings yield. Now of course, there are people saying that it can grow its earnings by 30% CAGR. However, that would still imply that it would take over 6 years just to catch up with the current 5% yield of a 3-month Treasury bill, or 12 years to catch up to the 10% yield of a stock trading at 10x PE.
Sorry, I'm new to this. How does this calculation work?