Fred and Harry,
Fred makes a good point. I think one has to look at the totality of the company to evaluate the relative risk/reward ratio that the investor is willing to assume. While I believe, Harry, that your attempt to establish a common standard from which to cross evaluate companies is beneficial, it is only one of many ways, (albeit, in my opinion, a good quick valuation method). However, it is also my opinion, fom many years of experience, that the best method to cross evaluate companies is to use the one that the market will have in vogue, and use, three months from now. (g).
Regards,
Jules |
