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Toxic Avenger

11/08/17 10:15 AM

#6581 RE: NYKnuckleballer #6580

You keep missing the point. When Bai was bought, they were wildly profitable. At that point, you don't use P/S, you use P/E.

CELH is wildly unprofitable. So P/S is the only possible measure and as noted many times, it's way out of whack for an unprofitable company, even one with a decent, though certainly not spectacular, sales growth rate.

Companies that grow sales, but never get closer to profitability are not highly valued as acquisitions.