When the P/E Multiple Collapses in the Face of Yield: Lessons from 59 U.S. Technology Stocks Through the PPP–SIRRIPA Framework

The analysis of 59 major U.S. technology stocks reveals a fundamental contradiction at the core of contemporary equity valuation. While price-to-earnings (P/E) multiples display extreme dispersion—ranging from about 16 to more than 1,300, nearly two orders of magnitude—structural expected returns measured by SIRRIPA cluster tightly between approximately 4% and 10%. This article shows that this divergence is neither accidental nor cyclical. It reflects the structural inability of the P/E ratio to measure the economic value of an equity, and it confirms that yield—when properly defined—constitutes the universal, arbitrable, and durable unit of financial value. This discussion is based on the empirical results presented in A Structural Ranking of 59 U.S. Technology Firms: From P/E Ratios to Expected Equity Returns (Rainsy Sam, 2025), available at: https://zenodo.org/records/18136319