P/Es are misleading, though simplicity makes the P/E ratio one of the most commonly used valuation metrics. Read on to see the problems with P/E and how we apply a better measure of value. #WednesdayWisdom 1/15 The flaws with P/E ratio begin with the denominator – earnings. Accounting earnings are unreliable for two reasons: 2/15

Freshpet’s ($FRPT) rapid revenue growth has no doubt gained investors’ attention. However, while Freshpet’s revenue has tripled since 2016, Core Earnings have fallen in three of the past four years. Growth and market share gains will be more difficult going forward. Freshpet faces competition from much larger firms in the pet food industry, and the rise in popularity of the company’s products is certain to garner more attention from existing competition.

Quarterly earnings season may be winding down, but the real earnings season – annual 10-K filing season – is ramping up. See thread. Since 2005, we’ve reported how traditional earnings measures are unreliable due to accounting loopholes that allow companies to manage earnings.

We believe Bill Ackman's Pershing Square is wrong to purchase shares of Netflix and we fear that other investors will follow suit and purchase this dangerously overvalued stock simply because they trust and admire Bill Ackman. See thread $NFLX We expect muted growth, such that is guided for in 1Q22, is the new normal, because competition is taking meaningful market share from Netflix and making subscriber growth more expensive. - photo cred JustWatch