3 ms·
> Sidenote: 3 is actually high. Do you mean low? AAPL has a ps of 10.
by ralfd 4mo ago
> Sidenote: 3 is actually high.
Do you mean low? AAPL has a ps of 10.
- doctorpangloss 4mo agoYou're arguing with people who have no idea what they're talking about.
- BobbyJo 4mo agoWho's arguing?
- BobbyJo 4mo agoGenerally < 1 is low, between 1 and 3 is in the middle ground, and > 3 is high. However, that all depends on margins, which is why people generally use P/E or forward P/E rather than P/S to compare multiples. Issue here being that P/E is nonsensical for unprofitable companies or companies with very low margins. Spacex's P/E after Google pushed them into profitability by a slim margin would look absolutely stupid. I would also like to point out, that on a forward P/E basis, AAPL is quite overvalued compared to historical norms, but basically every tech company is right now.
- marcosdumay 4mo agoMost companies have a P/S of 1 or 2, almost all have it bellow 4. A few segments of the economy are known to have low revenue/investment ratios, and companies there get P/S up to 7 or so. Then, very few companies have people betting on their growth so much that their P/S get as high as 15. And then you have literally about half a dozen exceptions on the ones S&P tracks that get higher than that.
- burnte 4mo agoNothing about Apple is representative of a normal business.
- rbanffy 4mo agoIt’s an interesting phenomenon: being Apple is one of their key sales drivers. The brand is worth more than the business itself.