I’m not sure I follow. If capital gains are strongly correlated with profit afte... | Hacker News

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alex_young on June 9, 2021 | parent | context | favorite | on: ProPublica's tax story

I’m not sure I follow. If capital gains are strongly correlated with profit after taxes, shouldn’t price to earnings ratios be somewhat similar? For instance, GM has a past year p/e of 13 and Tesla has a p/e of 943.

WalterBright on June 9, 2021 [–]

Higher p/e's are based on expected future earnings. The two converge sooner or later.

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