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Re: Traderfan post# 564

Tuesday, 12/11/2007 8:53:06 PM

Tuesday, December 11, 2007 8:53:06 PM

Post# of 16405
AAPL has a P/E of 50 by the way. I think you're confused about what sales/market cap means.

P/E is price per share divided by earnings per share. Multiply the numerator and denominator by the o/s and you'd get market cap divided by earnings. Since earnings are likely about 30% of sales, so your number is way off.

And who uses sales/market cap anyway? The smaller that number is, the more people value the company, so your analysis is even more flawed. I'm guessing you meant to say market cap over earnings, but it's still wrong by a long shot.

God grant me the serenity to deal with the things I cannot change; courage to change the things I can and should; and wisdom to know the difference.

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