Yes, I agree: it's good to evaluate on several measures.
It's a philosophical thing too. I assume most people look for reasons to exclude stocks from purchase. That is, for any stock somebody comes across, it isn't a buy for them because maybe the person won't buy large caps, or won't buy any microcaps, or the dividend is too small, or the p/e is down, or there's too much debt, or analysts are issuing sell ratings or the psr is still too high, etc. etc. All supporting reasons for somebody to avoid making a purchase. Valid reasons too.
Obviously for anybody who looks at all the various stocks I am buying, my philosophy is going to be different. I am trying to find reasons to include stocks for a purchase, not exclude them.
So as regards DIS, it does not pass my requirement for either p/sales comparisons or for p/book measures. It did though in the past go 'round on the thread ('02-'03). However, on forward p/e -- acknowledging that basing purchases on forward estimated earnings is VERY dangerous -- I can include the stock now as a buy. Jmo of course. And it helps - confirms sort of - that people who use cash flows to make their buys, also say it's a value at current price. |
