P/E Tells You the Price. Reality Gap Tells You the Delusion

t0mpr1c3

No prize for guessing the most unreal stock in Nasdaq.

pinkmuffinere

From [1]: > A higher RG value indicates a larger gap between market valuation and the estimated fundamental base — meaning the market is pricing the company at a significant multiple of what the fundamentals alone would support. A lower RG value suggests that the market price is closer to being covered by the fundamental base. This is dumb. They’ve decided that their estimate of the true value is the correct one, and then calculate the difference from that. But of course, the fundamental issue is everyone has a different estimate. There’s no reason to believe their estimate is better than anyone else’s [1] https://hstre.github.io/Reality-Gap/methodology/

laughing_man

For mature companies in mature markets, I guess. It's kind of odd to see this sort of thing on a site so closely associated with startups.