I am just wondering if you're using superlatives like "extremely overvalued" for a company like AMD what's left for the rest of them ? Ultra giga hyper overvalued ?
well companies like apple microsoft google have serious sustainable income streams from their appstore, o365 and azure advertising...
they have OK P/E ratios (price to earning) for every dollar they make their market cap is that much bigger
it's said that anything below 50 is in a normal economic climate Good, over 50 would be over valued.
in recessions that number would be lower.
AMD's P/E as of last week was 161
Nvidia 60
intel 20 (after last weeks correction)
microsoft 34
google 31
apple 33
facebook 45
Tesla 56
so Nvidia & tesla would be over valued.
and AMD is extremely over valued.
but sure, there are companies that are trading even higher than what they earn, and I honestly don't know what i would call companies that have +1000 ratio's