Cyclicals and normalized earnings
For a cyclical, this year's earnings say more about the cycle than about the business. Value it on what it earns through the cycle, and expect P/E to look backwards at the turns.
This lesson is Pro
All 7 lessons in Valuing public equities, with checks as you read, two quizzes, and flashcards.
The first lesson of every track stays free.
7 days of Pro. No card, nothing to cancel.