The PE isn't 127.
That's the hedonistic, Irrationally Exuberant Pro Forma PE. The real PE, using GAAP numbers, with all the usual and repetitive charges put back in, the restructurings and writedown charges that happen every downcycle to every company in this industry:
0.27, 0.13, -0.10, -0.06 are the earnings for the last 4 quarters. They add up to 0.24
47.96/0.24 = 200, a nice round number.
Notice, when next earnings come out, that 0.27 drops out, and then the (real) PE gets really high.
But I use P/S, because it doesn't scare me as much. And that ratio doesn't do weird things, like approach infinity as the denominator approaches zero. |
