P/E 30 Ratio

See: P/E 10 Ratio.

So if you know what a P/E of 10 is (slow growing company, lots of risk, lots of negative vibes about it), then what's a 30?

Like...30 is a very high multiple. For a dollar of earnings this year, you're paying $30. You must be expecting enormous growth. So if that's the case, then what does it mean? Well, it means the company has a new technology that cures something that ails rich people. It means that the company has a new method of reducing the number of clicks it takes to find, um, art films. It means that the company is doubling revenues every 2-3 years, maybe increasing margins. Generating a lot of cash.

Very high multiple for very high expectations.