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Stage 15 · Lesson 11 / 15
Sector-Normal Multiples
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Sector-Normal Multiples

Coach Chad, waving

Lesson 11: P/E 32 is the median for software. The same number is screaming expensive in banking. Context first.

P/E 30 — expensive or not?

A software company and a bank both trade at a P/E of 30. Can you tell which is expensive from that alone?