Write a short reflection paragraph on classmates' research posts, highlighting the sources of information that significantly contributed to our online learning. The author is William. A. There are a few issues with using P-E Multiple first lack of positive earnings, inapplicability of traditional multiples, potential mispricing, and high volatility. Positive earnings suffer because when a company does not yet record profit then there is an absence of positive earnings. If a company says Uber has no earnings or negative earnings then the multiple is pointless, it won't provide you with any detail. Traditional multiples are based on historical trends. With a new EV startup, it is very difficult to compare it to, say, Ford. They tend to be money pits until scale and profitability is achieved. Mispricing can occur when information is lacking ie when the P-E multiple is off under, or over-evaluations are common. I know that Tesla was booming for a bit without a traditional base. Any startup will experience volatility however this case is worse than normal. If Mexico builds more EVs for half the cost of Tesla and the NAFTA makes it legal to import than Tesla will falter. B. The Price-to-sales ratio accounts for market