Replies to post #165484 on Bebida Beverage Company (BBDA)

[Whiplash_Investor]

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.