Another way of looking at that p/e is that it is 17.5 years earnings just to pay back your investment. Let's just call it ten, allowing for growth but also con

Another way of looking at that p/e is that it is 17.5 years earnings just to pay back your investment. Let's just call it ten, allowing for growth but also considering some hefty risk discounting, and allowing for the reduction in margin due to competition (mentioned in another comment). This is a market that is three years old, and massively susceptible to discontinuities - specifically newcomers and legal changes. I postulate that they will avoid paying dividends for at least a decade, perhaps throwing out a mangy 10% stock buyback (after issuing 11% in stock options to employees). I am inclined to put on even more risk discount. Personally, I'd invest at a p/e of 4, maybe, but keep in mind that I don't really know what they do; so I suppose I will change that to a p/e of 3.2, and let's round it off to 3.