3 ms·
investors primarily care about future profits. trailing twelve month revenues are just one of many potential indicators of future profit. a 7x multiple of rev
by elsewhen 10y ago
investors primarily care about future profits. trailing twelve month revenues are just one of many potential indicators of future profit. a 7x multiple of revenue _is_ very high for a slow or no-growth company, but for a high growth company, it can be very reasonable.
- sologoub 10y agoNot saying it couldn't be, but as of late the overall market seems to be more pessimistic and therefore discounts prospects of future earnings more than usual. That said, I'm no expert.