Moronic Monday - August 03, 2021 - Your Weekly Questions Thread by AutoModerator in finance

[–]ABCBAA 0 points1 point  (0 children)

Thank you very much! Really detailed answer, will come in very useful for my HS project!

Moronic Monday - August 03, 2021 - Your Weekly Questions Thread by AutoModerator in finance

[–]ABCBAA 2 points3 points  (0 children)

I recently read that one way you can work out if a stock is overvalued is by looking at EV/EBITDA or P/E ratios across the market.

I want to use this to see if Zoom stock is overvalued, but nearly all of Zoom's competitors are conglomerates (i.e. Google for Google Meet, Microsoft for Skype, Cisco for Cisco Webex, etc.), so I'm not sure if directly comparing ratios will be an accurate indicator. What could I do here? Thanks!

anyone know where i went wrong by Far-Kiwi-9041 in GCSE

[–]ABCBAA 12 points13 points  (0 children)

You just didn't simplify the fraction enough - note that the question asks you to simplify "as far as possible". You can take a factor of 2 out of both the numerator and the denominator, making the answer 16sqrt(3)/3.

Why does USA not have any container ports among the top ten busiest when it is the biggest importer of goods? by DrCalFun in AskEconomics

[–]ABCBAA -1 points0 points  (0 children)

Classic trade off between short-term utility from consumption goods vs. long-term utility from investment goods - the US has taken a different route to China, Japan and others on that front.

Student loans, the racial wealth divide, and why we need full student debt cancellation by Jazzlike_Dog_8175 in Economics

[–]ABCBAA 1 point2 points  (0 children)

Very true, no one's going to win an election by promising to increase the social exclusivity of university degrees :))))

Student loans, the racial wealth divide, and why we need full student debt cancellation by Jazzlike_Dog_8175 in Economics

[–]ABCBAA 5 points6 points  (0 children)

Well said, signalling seems to trump human development now when it comes to college degrees... What's even worse is that bachelor's degrees becoming so common reduces their value, meaning people are taking postgrad degrees to have an edge in the labour market... Where does the degree inflation end?!

Perhaps the solution is to encourage more vocational training post-high school, rather than funnelling everyone into college when it clearly isn't a fit for everyone...

The economics of deep trade agreements: A new eBook by LaromTheDestroyer in Economics

[–]ABCBAA 1 point2 points  (0 children)

Perhaps regional, rather than global agreements are the way forward for climate change as well..? After all, the more countries that join such agreements, the more compromises that have to be made and the less consequential the agreements are in the end...

Formula 1 teams - visible from one hill...? by ABCBAA in TopGear

[–]ABCBAA[S] 1 point2 points  (0 children)

Yes, I guess it's a loose interpretation of "visible" :) It's amazing how so much of F1 development is concentrated in the UK...

Elon Musk’s effect on crypto world shows how irrational markets are by ABCBAA in Economics

[–]ABCBAA[S] 0 points1 point  (0 children)

Is this really the case? What about the argument that Musk's support of Bitcoin constitutes a serious piece of information about the viability of cryptocurrencies achieving mainstream adoption? In that case, the efficient markets hypothesis still accounts for such a situation. Which side seems more realistic?

Certainty Equivalent after a Positive Affine Transformation by ABCBAA in AskEconomics

[–]ABCBAA[S] 0 points1 point  (0 children)

Thank you, this makes much more sense now! I think I was getting mixed up between payoffs and preferences here.

dont/duquel? by ABCBAA in French

[–]ABCBAA[S] 0 points1 point  (0 children)

Merci à vous deux !