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Do Fundamentals Matter Anymore in Stock Markets? 
It sounds to me like you may not be defining fundamental investing very well, which is why it may seem like it doesn't matter.  Fundamental investing means valuing a stock based on your estimate of its future profitability (and thus cash flows and dividends).  One way to do this is to look at the multiples you have described.  But multiples are inherently backward-looking so for firms with good growth prospects, they can be very poor estimates of future profitability. When you see a firm with ratios way out of whack with other firms, you can conclude that the market thinks that firm has a lot of future growth possibilities.  That's all. It could be that the market is overestimating that growth, but you would need more information in order to conclude that.  We call Warren Buffet a fundamental investor because he tends to think the market has made a mistake and overvalued many firms with crazy ratios.  That may be in many cases, but it doesn't necessarily mean those investors are not using fundamental analysis to come up with their valuations. Fundamental investing is still very much relevant and is probably the primary determinant of stock prices.  It's just that fundamental investing encompasses estimating things like future growth and innovation, which is a lot more than just looking at the ratios you have described.