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To: Follies who wrote (13941)4/25/2001 2:26:06 PM
From: Kirk ©  Respond to of 42834
 
I agree but I have not found a data source that gives sales or book value that I can feed into Excel. I track BOTH for stocks I follow and I can say that there have been some really good values, even for a bear market, on some micro and small caps. I've found Price/Sales of 1.2 for a few very good tech companies... and bought one at book value! The Nasdaq1000 has a LONG way to go before that sort of valuation arrives. Hopefully, it doesn't go there... but it IS still a beauty pagent of sorts. Funny to think it ONLY gives 50% weightings to companies that make the most money!

Kirk



To: Follies who wrote (13941)4/25/2001 2:50:56 PM
From: Math Junkie  Respond to of 42834
 
One solution to the divide-by-zero problem is to calculate earnings yield instead of P/E. Since it is E/P and we are only interested in stocks with non-zero price anyway, that takes care of the problem. It has the added benefit of making the comparison between stocks vs. interest bearing securities more apparent.



To: Follies who wrote (13941)4/25/2001 3:15:08 PM
From: Skeeter Bug  Respond to of 42834
 
dale, no one metric will tell the whole story. pe is very important, but must be used in conjunction with other metrics and analysis.

btw, is a p/s ratio of .5 good? what if the company could *never* make sustainable cash flow? .5 looks very bad, then.

again, one must use multiple metrics and must analyze where those metrics will be in the future.