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.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jurgis Bekepuris who wrote (47153)3/23/2012 10:33:23 AM
From: Paul Senior  Read Replies (2) of 78662
 
Yes, it does seem that high margins double weights the high roe. However, sometimes I find companies with very high profit margins (margins that might be sustainable), moderate or only very good roe, yet with a high enough p/e to where I wouldn't buy the stock if it were only on my usual p/e to roe valuation. GOOG and QCOM are examples where the very high profit margins weighed heavily on my decision to buy -- those superb margins trumped what I would otherwise avoid (very high p/e but not an off-setting outstandingly high roe).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News