Let us say a company is estimated to grow at 15-20 times EPS at most for the next five years (assuming the company...
Let us say a company is estimated to grow at 15-20 times EPS at most for the next five years (assuming the company uses convoluted ways to retain the growth). The same company has a current price to earnings ratio of 200, and can go down soon, if the market corrects for overzealous investors who are just inflating the market. If the company is worth 500 billion dollars now, what should be the real worth of this company? How does such kind of inflated company market value impact the overall economy?