There is a lot of air under its lofty PE ratio. Maybe the price is deserved, but I can see it falling fast if the economy takes a turn for the worst.
We were talking about problems with PE's on The Decline of the P/E Ratio; it's last year's earnings divided by a price that's based on what we expect next year's earnings to be. The numbers that impress me are:
PE / 5 year earnings growth = 0.5
Return on 5 yr. earnings = 13.2
Return on 1yr. earnings = 21
CMG is no slouch.