Dear JDN: I agree that MSFT is not really comparable to SUNW. As do you, so, too, do I have a hard time finding a comparable company for a price/sales (or any) comparison with SUNW. Your suggestion of using EMC is a good one. Here's a chart for the two:
techstocks.com
EMC's price/sales is double that of SUNW!
Maybe someone with an understanding of the relationship between price/sales and stock price will have some insight. Not knowing myself, its pure guess on my part that SUNW looks cheap, irrespective of its PE.
On a humorous note, since the prices being used to generate the charts have been changed since my initial posting, I decided to add STM, which has been neck and neck with SUNW. It must be the influence of Sunday, but it looks like the Holy Trinity, Father, SUN, and Holy Ghost [given what these companies do]:
techstocks.com
Regards,
Lynn |
