Mag 7 PE < 20? How Much More Downside is There?

After this market bloodbath, let's take a look at how the forward PE ratios of the Mag 7 are performing.

Two companies from the Mag 7, $Alphabet(GOOG)$ and $Amazon.com(AMZN)$ , have reached historic low PEs.

Google’s PE has dropped below 20, while Amazon stands at 27.07.

$NVIDIA(NVDA)$ is only 13% away from its historical lowest PE, and if it falls to $83, its stock price will reach the lowest forward PE in the past 10 years.

$Microsoft(MSFT)$ , $Meta Platforms, Inc.(META)$ , and $Apple(AAPL)$ are still far from their historical lows, but Meta’s forward PE has already dropped below 20, currently at 19.87.

$Tesla Motors(TSLA)$ is currently the highest valued company in the Mag 7, with a 202% gap to its historical lowest PE.

However, we cannot only focus on forward PE. Google’s valuation has been low for the past two years due to market concerns about AI replacing Google Search; while Tesla enjoys a high valuation for reasons we all know.

Do you believe in the PE indicator?

Besides PE, do you look at other metrics?

What is your target price for bottom fishing?