News Focus
News Focus
icon url

SyndicateTwo

12/27/07 11:52 PM

#16027 RE: rambos_10 #16026

I know you focus on that price to sales ratio all the time, but really it's irrelevant in the big picture because so many stocks trade on absurd ratios.

Look at AKAM -- P/S = 11
GOOG -- P/S = 14
AAPL -- P/S = 7.4
SIGM -- P/S = 8


So, you can see that multiples based on their revenues are completely subjective. I remember when MRVL at $36 was said to be absurdly overpriced at a P/S 7. Well, I don't hear 'them' saying GOOG or AAPL are over priced.