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Non-Tech : E*Trade (NYSE:ET)
ET 17.43+0.5%3:59 PM EST

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To: Oeconomicus who wrote (3452)8/3/1998 3:50:00 PM
From: Scott Stents  Read Replies (2) of 13953
 
Price to book is meaningless on an immature company like EGRP. You need to look at cash flow relative to the balance sheet. If P/B meant something, then EGRP would issue an infinite amount of shares at $25, meaning their BV would approach $25/share, and applying a multiple of 3 would in theory enable them to instantly sell the stock at $75 on the market. Thats why P/B ratios cant be applied in companies who have recently issued stock (as was the case with EGRP w/ Softbank).
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