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Re: viking86 post# 72070

Sunday, 09/21/2014 10:11:15 PM

Sunday, September 21, 2014 10:11:15 PM

Post# of 163722

Bottom line I think its stock should primarily be measured based on P/E and eps growth (which much better reflects its operational strengths and margins), not so much on P/B or P/S... Other thoughts welcome.



Yes, that was a problem I had to solve when I was working on my valuation model. My conclusion was that it's all about P/E and growth. If you're not growing then P/B becomes relevant. If you are profitable and growing fast then it doesn't matter whether you are trading at a P/B of 0.5 or 10. I don't even consider P/S in my model.
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