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> stable company typically has a P/E ratio of 20

This is a 5% earnings yield. That's a whopping 99 basis points ahead of the 1-year rate and 103 north of the 6-month [1]. One can adjust for growth [2]. But a neutral 20x multiple is not a fact of nature.

[1] https://home.treasury.gov/resource-center/data-chart-center/...

[2] https://en.wikipedia.org/wiki/PEG_ratio



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