SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology
EDIG 0.00010000.0%Mar 20 5:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JimC1997 who wrote (14444)8/24/2000 1:05:49 PM
From: Jon Tara  Read Replies (1) of 18366
 
JimC, define "entire market". Do you mean per year? In what year? What do you see their total (peak) yearly market size as? Don't make the fatal flaw of assuming unlimited growth, and continuing to assign the same ratios at market penetration.

What growth rate are you assuming?

(What year in which you would anticipate such sales numbers in part would define the growth rate.)

Withing defining these parameters, your numbers are meaningless. Particularly, without presuming a growth rate, price/earnings, price/sales, etc. ratios are meaningless.

I certainly disagree that a P/S ratio of 10 is at all reasonable. For example, Sony's P/S ratio is 1.39. If you want to look at them as a consumer electronics manufacturer, you have to compare them with other consumer electronic manufacturers.

Of course, it sounds good on paper. It sounded good to the Iomega cultists, as well. At it's peak, it would have been necessary to sell a Zip drive to every person on the planet, AND discover life on Mars, in order to justify their valuation...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext