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Technology Stocks : Intersil - ISIL
ISIL 22.490.0%Feb 27 3:00 PM EDT

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To: Czechsinthemail who wrote (459)3/28/2004 8:41:54 AM
From: Dave  Read Replies (1) of 467
 
Baird,

"Value" is not defined as going higher up the income statement and comparing various companies' Price to Sales ratio.

In fact, the price to sales ratio is heavily dependent upon two items:

1. Net profit margins
2. Future growth

In fact, ignoring "future growth", when you compare Intersil's margins to other companies' margins, you find out rather quickly that Intersil's margins are substantially lower thereby "explaining" why ISIL's P/S ratio is much lower than its comps.
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