Comment by shadowtree

It's so interesting how people try to rationalize modern valuations by connecting them to some other metric (P/E, growth, etc.).

None of that is true.

Stock price presents demand for the stock. Demand is emotional. The stock market represent (rich) people's feelings.

I want to own a piece of Apple, because a bunch of others want a piece of Apple.

Tesla's stock is exhibit A for this.

If there was a direct correlation between some metric and stock price, every trade would be automated.