The Price-to-Madness Economy: Why Valuations Don’t Matter… Until They Do
From the very beginning of organized markets, traders and investors have relied on comparisons to understand value. We have always measured one thing against another — price against earnings, price against assets, price against revenue — because numbers alone tell us little. It’s the relationship between numbers that reveals the truth. These valuation ratios became the compass points of investing: the quiet, reliable instruments that helped us judge whether a business was healthy, overextended, or full of unrealized potential.
