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Re: John_Langston post# 165484

Monday, 09/10/2012 1:37:49 PM

Monday, September 10, 2012 1:37:49 PM

Post# of 289427
I wasn't talking P/E. I was talking PS or Price to Sales ratio, as in Mkt Cap to Revenue ratio. P/E is a different animal and 30 is high. The average P/E for all stocks varies from 12 to 18. Pennys are usually at 8, but good, high growth ones at 12. The big stocks can have P/Es higher than 30, but it is rare. Facebook is trading near a 200, since many valuations of it are around $7. $19 is a little steep and if you look for past few months, it is downtrending for that very reason.

But having said that, 12 is just a center point. Any stock will trade under or over that. Current P/E for BBDA is 24, based on TTM (trailing 12 months). It would be around 12 if it weren't for all the great activity going on.

In the absence of that which is not, that which is, is not.