My point is that the recent returns that came from Alphabet were largely from the multiple expanding. Even if you take the PE multiple, which is bigger than the currently presented 25.5 if you subtract gains on equity securities because they're a one-time event and I like to evaluate the company based on NOPAT, it's still trading at very high levels. I guess just ignore these comments if they annoy you. I like to look at multiple metrics when evaluating companies and the ROE : P/BV (which ultimately is the earnings yield) was one such example.

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Since when does P/BV matter in this market?

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Keep in mind, the long-term average P/BV of Alphabet used to range from 3.5-4.5 up until Covid. Link [***HERE***](https://www.macrotrends.net/stocks/charts/GOOG/alphabet/price-book). Then it shot up and crashed back down to historical levels. This came with a 40% stock price correction downwards. Now the stock's P/BV is at 8, the highest it's ever been and literally twice the historical average. To me that either means another massive correction is coming or the stock won't move for years until revenue catches up to the price... and it's mostly the same story with almost every other stock in the S&P 500. Even companies like Walmart and Costco are priced at insane levels and there's no way the current price paid will produce a 10% yearly return on average. I think it's time to start looking at international companies.

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