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So the P/E ratio is currently about 398 (optimistically) assuming they earned $2M for each of the last 4 quarters. Guess that isn't a useful metric for valuing
by aquark 15y ago
So the P/E ratio is currently about 398 (optimistically) assuming they earned $2M for each of the last 4 quarters.
Guess that isn't a useful metric for valuing 'social' companies! Anyone know what Google or Amazon's P/E ratio was when they went public?
- iamjustlooking 15y agoNot sure of the exact number but you can see it on the charts here: http://ycharts.com/companies/AMZN/pe_ratio http://ycharts.com/companies/AMZN/pe_ratio http://ycharts.com/companies/GOOG/pe_ratio http://ycharts.com/companies/GOOG/pe_ratio Edit: Worked it out, GOOG was 154.29 and AMZN was 657.75
- svrocks 15y agoAmazon went public in 1997 for $18/share with 1996 revenues of $16MM and $(6MM) net loss. Google went public in 2004 for $85/share at about 100 P/E
- horatiumocian 15y agoI think the most important thing is that they have healthy revenue growth (more than 100%). If they have $90M in revenue per quarter, they can do much better than $2M in net income, if they focus on that, but they are still focusing on growth. If I remember well, LinkedIn predicted a net loss for 2011.